Mozambican government awaits arrival of IMF mission

15 June 2016

The Mozambican government is waiting for the arrival of a mission from the International Monetary Fund (IMF) in the next few days, to analyse the macroeconomic consequences of so-called hidden debts, Mozambique’s Prime Minister said Tuesday in Maputo.

“In the next few days, the IMF will arrive and together with them we will analyse the macroeconomic consequences of the debt,” said Agostinho do Rosario speaking on the sidelines of the opening of the General Meeting of the Cooperative Organisation of the Community of Portuguese-speaking Countries (CPLP), held Tuesday in Maputo.

Noting it was important to “look ahead” the Prime Minister said that Mozambique was rich in natural resources and was therefore capable of overcoming the economic adversity it is facing.

Members of the government attended parliament last week to explain hidden debts of over US$1.4 billion taken on by state companies and given the go-ahead by the previous government, between 2013 and 2014.

Speaking at the time the Mozambican Prime Minister recognised undisclosed debts of US$1.4 billion, which led the IMF to suspend the second tranche of a loan to Mozambique and send a mission to Maputo.

The group of 14 state budget donors has also suspended its payments, a measure that was also followed through by the United States, which announced it would review its aid and demanded, similarly to the United Kingdom, an international audit. (macauhub/MZ)