Mozambique: IMF debt relief opens space for new support – Vuma

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Mozambique: IMF debt relief opens space for new support – Vuma

3:09 CAT | 14 Apr 2020

File photo: O País

The president of the Confederation of Economic Associations of Mozambique (CTA) says that the International Monetary Fund’s “relief” of Mozambique’s debt service, amounting to around US$15 million over the period April 14 to October 13 of this year, is a positive point .

This will somewhat relieve the Mozambican state’s accounts, given that the proposed State Budget for 2020 foresees about US$570 million in debt service alone.

“This debt relief will allow us to release US$15 million from [the US$570 million previously allocated to] debt service to allocate to other items, such as social protection, support for small and medium enterprises or even the needs of the national health system,” CTA chairman Agostinho Vuma told ‘O Pais’ in an exclusive interview.

The country’s largest business organisation points out that the amount must be applied to one of the Covid-19 mitigation package in one of the above-mentioned sectors

“However, I predict that this will be just one IMF decision in support of Mozambique because, as of now, this debt relief reduces Mozambique’s indebtedness to the IMF and may open space for more [IMF] support,” Vuma notes.

By Clemêncio Fijamo

Source: O País