Banco Montepio sells 45.78% stake in Mozambican Banco Terra to Arise
The Mozambican prime minister says that the government is verifying the validity of the state’s debts to suppliers of goods and services, and will then proceed with their liquidation.
“We are in the interaction phase [with suppliers of goods and services], which may culminate in the process of paying the debt, in accordance to its validation and compliance,” Prime Minister Carlos Agostinho do Rosario told the Assembly of the Republic on Wednesday.
The process will cover the settlement of state debts for the period 2007 to 2017 .
“The payment of state debts to suppliers of goods and services will contribute to the continued dynamism of the economy, particularly small and medium-sized enterprises,” the prime minister said.
The Mozambican government has decided to initiate the process of settling its debts to the private sector in order to improve the management of public accounts as part of the fiscal consolidation effort.
Fiscal efficiency resulted in the reduction of public spending from 33.9% of gross domestic product in 2016 to 30.5% in 2017.
The prime minister stressed that the release of more resources for the private sector would boost the economy of the country at a time when it is recovering from the crisis that occurred last year.
Do Rosario announced in March that the government had set aside 2.7 billion meticais (37 million Euros) to pay off 17% of the state’s debt to the private sector.Source: Lusa