Mozambique: Government owes $2 bn in unpaid VAT rebates – Hanlon

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Mozambique: Government owes $2 bn in unpaid VAT rebates – Hanlon

2:17 CAT | 07 Jun 2018

Industry and Finance Minister Ragendra da Sousa admitted that the government has unpaid VAT rebates of $2 bn, 12% of GDP. De Sousa was speaking at a Mozambique investment conference in Portugal 5 June. (O Pais, 6 June)

This is about 120 bn Meticais, which when added to unpaid debts to suppliers is as large as government’s official borrowing as cited by the IMF’s Ari Aisen. da Sousa said he hoped to resolve the problem through foreign borrowing, perhaps a bond issue, “but under the present conditions this is not possible.”

ALSO READ: Mozambique studies debt issuance as a means to pay back arrears worth 12% of GDP

Source: News reports & clippings