Restrictions on the hiring of state employees will continue
In file CoM
Moody’s analyst on Mozambique has today said the restructuring of debt securities and what happens to trade debt, in addition to the relationship with the IMF, will be the big questions of 2019.
“In the short term, there is the question of the restructuring of debt securities, whether or not the restructuring is completed according to the terms presented, and after that, knowing what happens to the rest of the debt, Mozambique has a fairly high debt level. And then, there is the issue of the International Monetary Fund, and all this will be the big issues for 2019,” said Lucie Villa.
Speaking to Lusa, the head of Moody’s rating agency for the monitoring of the Mozambican economy considered that besides these issues, with a direct impact on the sovereign credit, the rating agency will also pay attention to “the gas production capacity which is expected to start being exported in 2023, and that will also be relevant”.
These issues, he added, “will be decisive and related” because “an IMF programme will only exist if debt is sustainable, and usually a restructuring is made to ensure debt sustainability, and these are the three main elements for which we will be looking from the point of view of credit.”
In terms of possible resumption of IMF financial aid, Villa said the important thing is to look at the conditions the Fund has put in to restart financing.
“First, macro stability, and I think looking at it, it has been moderately restored, then audit the debt of public companies, and the last was to restore debt sustainability, and it is this condition that is still pending, i.e, it is uncertain what will be the assessment of the IMF,” she concluded.Source: Lusa