Mozambique’s finance minister announces spending cuts

6 May 2016

The Mozambican government will have to make cuts in expenditure included in the State Budget if the suspension of international support lasts for a long time, warned the Mozambican minister of Economy and Finance.

Minister Adriano Maleiane announced a suspension of new hires in the state and even admitted the possibility of the sale of the assets of the companies that have taken on debt guaranteed by the State if it they become unable to service those debts.

Commenting on the announcement of the suspension of funding by the 14 members of the group of programme support partners, Maleiane admitted the donors’ confidence had been “deeply shaken by the debt contracted by the Mozambican tuna company (Ematum), ProIndicus and Mozambique Asset Management.”

The only areas to escape cuts for now are health and education, with the minister saying that the mission of the International Monetary Fund (IMF) whose visit to Mozambique had previously been canceled was now in the country for meetings with the government.

Mozambique is faced with the suspension of international support following the revelation that the state had guaranteed loans amounting to US$1.4 billion, which were omitted from the financial assistance agreement signed with the International Monetary Fund . (macauhub/MZ)