Mozambican government to issue domestic bonds

14 August 2012

The Mozambican government plans to issues Treasury Bonds worth 3.150 billion meticals (US$113 million) in order to cover the expenses outlined in the State Budget, the minister for Planning and Development said Monday in Maputo.

This decision by the Council of Ministers, which authorises the Finance Ministry to proceed with the bond issue, was made at a time when the Mozambican press is reporting delays in payment of budgetary aid by some partners that offer financial assistance to Mozambique.

“The Finance Ministry has been authorised to issue Treasury Bonds to finance the economy and the issue will be of the size announced so that the State will not compete with national companies, as it is expected that existing resources will be used to finance them,” said Minister Aiuba Cuereneia, cited by Mozambican news agency AIM.

The minister recently said that the Mozambican government was analysing the possibility of making use of financing from emerging economies and multilateral financial institutions in response to the Euro Zone crisis.

The biggest provider of aid to Mozambique, both as direct budgetary aid and through specific sector programmes, is the European Union, whose member countries are experiencing the effects of the public debt crisis. (macauhub)