Mozambique: Central bank warns of increase in state domestic debt

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Mozambique: Central bank warns of increase in state domestic debt

2:03 CAT | 14 Apr 2022

File photo: O País

The Bank of Mozambique says that the state’s domestic indebtedness remains high, according to the most recent publication of its Bulletin on the Economic Climate and Inflation Outlook.

The country’s central bank says that, between December, 2021 and March, 2022, the state’s internal debt increased by 20,453 million meticais, essentially reflecting the use of treasury bills to finance the current account deficit in a context of weak demand for securities and public debt (treasury bonds) on the capital market.

The central bank document notes that domestic public debt, excluding loan and lease agreements and arrears, increased from 220.6 billion meticais at the end of December, 2021, to 242.3 billion meticais in March.

Analysing the price of significant commodities and the dynamics of the currencies of Mozambique’s main trading partners, the bank highlights that the reopening of economies and the outbreak of geopolitical tension between Russia and Ukraine are putting pressure on the transaction values of most-traded commodities.

Source: Noticias