Mozambique’s external net reserves estimated to be over 1 billion euros

18 July 2006

Maputo, Mozambique, 18 July – Mozambique has international net reserves valued at over 1 billion euros to cover its needs for imports and payments of outside debts , a source from the country’s central bank said Tuesday.

The amount is due to recent debt relief granted to Mozambique by its cooperation partners, which has made it possible to increase reserves, as compared to the 955 million euros which the Bank of Mozambique held previously.

Speaking to daily newspaper, Notícias, the head of the bank of Mozambique, Pinto de Abreu said that, as a rule, the country had reserves of around 1 billion euros, “varying based on entry of external aid, sale of currency for the inter-banking market, payment of foreign debt and other goods and services bought abroad.”

The World Bank recently said in Maputo it had pardoned 1.015 billion euros in debt owed to it by Mozambique, under the terms of the Multilateral Debt Reduction Initiative (MDRI).

Without the MRDI, Mozambique would have to pay around 25 million euros to service the debt in the 2007/2008 period, and around 76 million euros in the 2009/2011 period.

Soon the country is due to benefit from a debt pardon from the African Development Bank (ADB), according to Abreu. (macauhub)