IMF technical team says “solid progress” has been achieved with Mozambique

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IMF technical team says “solid progress” has been achieved with Mozambique

4:01 CAT | 23 Jun 2016

Lusa / From left to right: IMF's Michel Lazare (second from the left), sits next to Prime Minister Agostinho do Rosário and opposite Finance Minister Adriano Maleiane, yesterday in Maputo

The International Monetary Fund (IMF) technical mission which is currently in Mozambique to assess the impact of the so-called hidden debts said yesterday in Maputo that “solid progress” had been achieved in discussions with the Mozambican authorities.

“We had very good exchange of views with the Prime Minister, the Minister of Economy and Finance and other leaders. We made solid progress in discussions on the assessment of the economy and in relation to future discussions between the IMF and Mozambique,” head of mission Michael said in a brief statement to journalists.

Lazare was speaking after meeting Prime Minister Agostinho do Rosari and Minister of Economy and Finance Adriano Maleiane as part of a visit to the country intended to assess the implications debts contracted by the Mozambican government between 2013 and 2014 and not disclosed in state accounts.

The mission, which began on the June 16, is the first since the IMF in April cancelled a trip to the country following the discovery of US$1.4 billion of undisclosed loans. At the same time, the body also announced the cancellation of the second, US$155 million installment of a US$285 million loan that had been agreed with the Mozambican government.

The IMF’s decision was followed by similar determinations by the World Bank, the USA and the G14 group of donor countries and entities that directly support the Mozambican state budget, including the European Union.

Speaking this month in parliament, the Minister of Finance said that the country’s debt now totalled US$11.6 billion (EUR 10.1 billion), of which US$9.8 billion (EUR 8.6 billion) was external. This represents over 70 percent of gross domestic product, up from 42 percent in 2012.

Source: Lusa