Mozambique: Public debt rises to $14.3 billion in Q1

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Mozambique: Public debt rises to $14.3 billion in Q1

5:56 CAT | 24 Jul 2023

File photo: TVM

Mozambique’s public debt rose in the first quarter of this year to the equivalent of $14.37 billion (€12.96 billion), according to data from the ministry of economy and finance compiled on Monday by Lusa.

This is a growth equivalent to 5.4% over the previous period, according to the same official government data.

Mozambique’s domestic debt, as of 31 December 2022, was around 281.5 billion meticais (just under €4 billion), in this case 23.8% more than a year earlier.

“The increase in the domestic debt was mainly due to the increase in the issuance of treasury bonds, by 38.9%, and treasury bills, by 20.7%, with a negative impact on the availability of resources for the private sector,” said a report by the ministry of economy and finance on budget execution in the first quarter.

The weight of Mozambique’s public debt stock fell from 115.3% of Gross Domestic Product (GDP) in 2020 to 94.3% at the end of 2022.

“Although the growth rate of external debt (0.1%) was lower than the increase in domestic debt (23.8%), the volume of external debt remains higher,” it also highlights.

In terms of debt sustainability, overall, “despite showing a declining trend in recent years, it remains above the sustainability thresholds of 60%” of GDP.

READ: Mozambique: State places €47.5M in 10-year treasury bonds

Source: Lusa