Mozambique: IMF encourages reforms that reduce public debt

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Mozambique: IMF encourages reforms that reduce public debt

3:46 CAT | 17 Oct 2022

Abebe Selassie. [Photo: IMF]

The International Monetary Fund (IMF) supports the ongoing economic reforms in Mozambique while also advocating for effective control of public debt.

This position was expressed by Abebe Selassie, director of the IMF’s African Department, when he met a Mozambican delegation led by the Minister of Economy and Finance, Max Tonela, attending the annual meetings of the World Bank and International Monetary Fund in Washington, D.C..

“We encourage the reforms that the government is carrying out, but they must take place in a context of controlling public debt. The level of public debt is high – we need to work to reduce public debt,” Selassie said, according to a source from the Mozambican delegation cited by Notícias online.

While acknowledging that it was not easy to deal with fuel prices, inflationary shocks and high grain prices, among others, Selassie believed in adopting policies to reduce debt.

Abebe Selassie meanwhile expressed satisfaction with the resumption of relations between the Government and the International Monetary Fund, stressing that the IMF wants to strengthen and maintain ties with Maputo.

Source: Notícias