Mozambique: Government to spend over 300 million dollars on servicing domestic public debt – AIM report

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Mozambique: Government to spend over 300 million dollars on servicing domestic public debt – AIM report

6:10 CAT | 05 Aug 2025

File photo: Lusa

The Mozambican government expects to spend, in September of this year, about 20 billion meticais (over 310 million dollars at the current exchange rate) on servicing the domestic public debt in the event of interest rate fluctuations.

According to the Medium-Term Fiscal Scenario (CFMP) for 2025-28, cited by the independent newsheet “Carta de Moçambique”, the expected payments for amortization and interest will total about 20 billion meticais, making this the largest amount to be disbursed throughout 2025.

“The increase in the domestic debt stock in recent years will have a very large impact. Current data show a concentration of payments in specific periods, which may put pressure on the public treasury, requiring constant monitoring throughout the period”, reads the document.

The document explains that this scenario poses a risk as it reflects the growing dependence on domestic debt, the servicing of which has become a substantial burden on public expenditure, coupled with limited access to external credit and the increased need to finance the budget deficit, thus intensifying pressure on the public finances.

Over the last week, the Bank of Mozambique once again warned that the pressure on domestic public debt continues to worsen. The central bank says that domestic debt, excluding loan and lease agreements and outstanding liabilities, stands at 454.3 billion meticais (70.8 billion dollars), representing an increase of 38.7 billion meticais, when compared to December 2024.

Source: AIM