IMF expected to support Mozambique once again in 2017

3 November 2016

The International Monetary Fund will resume aid to Mozambique by the end of the second quarter of 2017 after the country started taking its first steps to take public debt to sustainable values, the permanent IMF representative in Mozambique said in Maputo.

“The exact date is not set, but I think it will be between the end of the first quarter and the beginning of the second quarter,” said Ari Aisen, during a conference organised by the Financial Times in the Mozambican capital.

Aisen said there was daily dialogue between the institution and the government to resume support to Mozambique and added that sit would likely not involve the programme that was suspended this year due to the hidden debt scandal, “and a new programme should now be approved.”

The IMF representative stressed that Mozambique is taking “certain steps” in the three elements that the Fund believes are crucial for its return to the country, according to Portuguese news agency Lusa.

“There has been an important step taken to restructure the debt, macroeconomic policies are being adjusted in the right direction and for the audit, which is a fundamental issue, there was very intense work with the Attorney General [of the Republic],” he said.

Aisen recalled that the disclosure of US$1.4 billion of loans guaranteed by the state, without the knowledge of international partners and the parliament, raised a “trust issue” but said he had no reason to believe that there are more hidden debts.

Stressing that the international audit will independently produce transparent information and noting that the terms of reference for the audit were discussed by the Director-General of the IMF, Christine Lagarde, and the Mozambican President, when Filipe Nyusi visited Washington last September. (macauhub)