IMF mission begins meetings with government of Mozambique

23 September 2016

A mission from the International Monetary Fund (IMF) arrived Wednesday in Maputo and on Thursday started meetings with members of the government of Mozambique in order to, among other things, clarify debts taken on in 2013 and 2014 and only disclosed this year, Mozambican daily newspaper Noticias reported.

This mission is the result of an understanding reached last week in Washington, during a meeting between the Mozambican President, Filipe Nyusi, and the director general of the IMF, Christine Lagarde.

At that meeting, it was agreed that the Attorney General’s Office would lead the process of auditing Mozambique’s public accounts to determine the legality of state sovereign guarantees.

A statement released by the IMF reported that Lagarde stressed the need for the government of Mozambique to take further measures to stabilise the economy and make further efforts to improve transparency, particularly in international and independent audits of the companies financed by funds that led to the public debt in question.

The disclosure of debt incurred by public companies with a State guarantee has led to the suspension of financial aid from the International Monetary Fund to Mozambique. This decision was replicated by other members of the Group of 14, countries and multilateral organizations that provide assistance to the country. (macauhub/MZ)