Mozambique: Government has paid 24% of total private sector debt

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Mozambique: Government has paid 24% of total private sector debt

2:44 CAT | 01 Mar 2019

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Photo: Folha de Maputo

The government disbursed nearly seven billion meticais in debt payments to the private sector in 2018, a figure corresponding to 24 percent of its total debt to suppliers.

Between 2009 and 2018, the Mozambican government accumulated a debt of around 29 billion meticais for goods and services provided by the private sector. Delays and non-payment forced many private companies into bankruptcy, especially in the construction industry.

In response, the executive last October announced the beginning of a programme of debt payments.

The newspaper O País learned from an official source that about 6.9 billion meticais has already been paid, corresponding to 24 percent of the total bill.

Speaking at the opening of parliament on Thursday, Prime Minister Carlos Agostinho do Rosário said this would galvanise the economy.

Source: O País