Mozambique: State issued €260M in treasury bonds in Q1

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Mozambique: State issued €260M in treasury bonds in Q1

12:12 CAT | 09 Aug 2023

File photo: Lusa

Mozambique issued treasury bonds worth €260 million in the first quarter, half the limit set for the whole of 2023, according to official data compiled by Lusa on Wednesday.

According to the economic and social balance sheet of the execution of the state budget from January to March 2023 from the ministry of economy and finance, Mozambique issued Treasury Bonds – debt with longer maturities – in the first quarter totalling more than 18,304 million meticais (€260 million).

These issues were made in two operations with two-year and three to five-year maturities.

The report also recalls that for the whole of 2023, the limit for issuing treasury bonds was set at 36.648 billion meticais (€520 million), so that in three months, half of the borrowing allowance through these operations has already been used.

In the same period, but in the issuance of Treasury Bills – debt with shorter maturities – the state raised just over 48.722 billion meticais (€691.7 million).

Of this total, the report states that more than 44.334 billion meticais (€629.5 million) were used to repay debt and almost 4.388 billion meticais (€62.3 million) were used “to finance expenditure”.

The document adds that in the first quarter, “no credit agreements were signed” but that donation agreements totalling 35.51 million dollars (€32.2 million) were closed.

The government of the Netherlands signed on 23 March a financing agreement worth $32.7 million (€29.6 million) for coastal protection works in the city of Beira, and the African Development Bank signed an agreement worth $2.81 million (€2.5 million) for the Integrated Development and Climate Change Adaptation Programme in the Zambezia River Basin.

Source: Lusa