Mozambique: External debt servicing reaches $348.9 million in Q1

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Mozambique: External debt servicing reaches $348.9 million in Q1

9:33 CAT | 08 Aug 2024

File photo: Banco de Moçambique

Mozambique spent $348.9 million on external debt servicing by March, up 46.4% compared to the first quarter of 2023, driven by the private sector, according to data from the central bank.

In its quarterly balance of payments report for the first three months of the year, the Bank of Mozambique justified the growth with the “increase in the realization of private sector financial liabilities by more than 100%”, reaching 144.8 million dollars, compared to 25 million dollars in the same period of 2023.

The public sector paid, between principal and interest, 204.1 million dollars in external debt service, which represented a drop of 4.3%, compared to 213.2 million dollars in the first quarter of 2023.

In the case of the State, disbursements between January and March involved the International Development Association, with 28.1 million dollars, the African Development Fund, with five million dollars, the Organization of the Petroleum Exporting Countries, with 1.8 million dollars and the Norwegian Development Fund, with 18 million dollars.

The Mozambican State also disbursed US$83.4 million in debt service in the first quarter “to the group of Eastern European countries, where China is the largest creditor”, according to the central bank.

“With regard to the private sector, the most notable payments were made by Major Projects, within the scope of debt for the implementation of the gas industry and in the area of transport and communications, included in the improvement of the mobile communications component”, concludes the report from the Bank of Mozambique.

Source: Lusa