Mozambique foresees €300B to implement ENDE, grow at almost 10% per year until 2044
Mozambique: IMF loan possible without secret debt deal – Joseph Hanlon
6:33 CAT | 30 Jan 2017
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The IMF Thursday effectively agreed with Mozambique’s policy of paying official bilateral and multilateral debt, but not making payments on the $2 billion secret commercial debt. The IMF can have a programme and can lend to Mozambique if there are private debt arrears, but not if there are official debt arrears. This was made clear at an IMF press conference in Washington.
But it was also made clear there are three conditions: 1) the Kroll audit must be successfully completed, 2) Mozambique must negotiate an “adjustment program” – that is, an austerity programme – and 3) that Mozambique must be “making a good faith effort to reach a collaborative agreement with its private creditors.” This does not require an agreement, just an offer of serious talks. Bondholders last week stressed that were not prepared to negotiate until after Mozambique has an IMF programme, which actually makes it easier for Mozambique because they simply need to offer in good faith to negotiate.
President Filipe Nyusi declared on Friday (27 Jan) that his government remains committed to winning back the trust of international financial institutions and donors. He was speaking at the inauguration of the new headquarters of the country’s second largest retail bank, the BCI (Commercial and Investment Bank). He also said the Kroll audit is going ahead “at a good pace”. Bank of Mozambique governor Rogerio Zandamelo Wednesday (25 Jan) predicted that Mozambique will have 5.5% growth this year and 14% inflation.
By Joseph Hanlon
Source: News reports & clippings
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