“Yes, it will be published” – IMF’s Rice on Mozambique’s debt audit

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“Yes, it will be published” – IMF’s Rice on Mozambique’s debt audit

10:26 CAT | 24 Mar 2017

imf.org / Screenshot of yesterday's press briefing in Washington. Gerry Rice answers questions on Mozambque's audit

The director of the communications department of the International Monetary Fund (IMF) yesterday promised that the Kroll audit of Mozambican public companies’ loans scheduled for the end of this month, “will be published”.

“The audit will be published, I don’t have the modalities and the timing of the release, that’s going to be determined by the public prosecutor but, ‘yes’, it ‘will’ be published,” Rice said during a press conference in Washington yesterday.

“You know that the audit is something that the IMF has been pushing strongly for,” Rice added.

During a primarily Greece-focused press conference, the IMF spokesperson addressed a question posed by Lusa about the progress of negotiations between the IMF and Mozambique on the one hand, and on meetings with holders of public debt securities on the other.

Asked whether Mozambique should negotiate a financial package with the IMF or restructure debt with creditors first, Rice replied: “I really don’t have a sequencing on that. The discussions are underway, I just mentioned the audit that has to take place so, you know, I don’t have a sequencing on that.”

The audit focuses on loans worth US$1.4 billion taken out in 2013 and 2014, coupled with the US$727.5 million from the issuance of sovereign debt that resulted from the conversion of corporate bonds issued by Mozambican Tuna Company (Ematum).

In February, the Office of the Attorney General of the Republic of Mozambique announced the extension, at Kroll’s request, of the 90-day audit period. It is expected that the work will be completed by the end of next week.

The independent international audit of hidden debts is a condition of the IMF resuming support to Mozambique following the suspension of its funding when the scandal broke in April 2016, leading a further 14 state budget to discontinue payments.

Please see the press briefing video in the following link

Source: Lusa / imf.org