Public debt in Mozambique will be clarified, says head of IMF

15 November 2016

The Deputy Director of the International Monetary Fund (IMF) for Africa, David Owen, said on Monday in Maputo that the measures already taken by the government of Mozambique will enable clarification of the conditions under which a State guarantee was granted on loans worth hundreds of millions of dollars taken on by state-owned companies.

At the end of a courtesy meeting with the Mozambican Prime Minister Carlos Agostinho do Rosario, Owen said positive steps had been taken by the government for the rapid clarification of debt with a view to restoring confidence among lenders and recovery of funding to the country.

Among the measures is the selection of consulting firm Kroll, which within 90 days will audit the accounts of the companies that took on the loans, in particular tuna company Ematum (US$850 million), Proindicus (US$622 million) and Mozambique Asset Management (US$535 million).

These three public companies took on loans in the amount of US$2 billion, and those relating to the latter two companies, which were contracted between 2013 and 2014, were kept secret from both the Mozambican parliament and the country’s cooperation partners.

Owen, quoted by Mozambican news agency AIM, also said that these audit processes required time and added that he was convinced that Mozambique’s current situation “will be overcome.” (macauhub)