Governor of the Bank of Mozambique says the country’s public debt is “frightening”

29 May 2017

Mozambique’s public debt has risen from 40% of gross domestic product (GDP), the highest level since 2013, to around 120% now, “a frightening fact,” said the governor of the Bank of Mozambique on Sunday in Cascais, on the outskirts of the Portuguese capital.

Rogério Zandamela, answering audience questions during a debate at the Horasis Global Meeting, which runs until 30 May, said that part of the increase in public debt stems from “undiclosed debt, which is a large amount.”

Despite this, the governor of the Mozambican central bank, quoted by Portuguese news agency Lusa, said he was confident of the country’s ability to overcome the current economic, budgetary and financial crisis, but did not hide that there are many challenges ahead.

In Maputo, director Waldemar de Sousa said that the central bank expects prices to rise by between 12.5% ​​and 14.5% this year and Gross Domestic Product (GDP) will grow between 3.0% and 4.0%.

Sousa, speaking at the National Business Council organised by the Confederation of Economic Associations of Mozambique, said that restoring the trust of donors and the International Monetary Fund in the State Budget, “is a challenge.”

“We are all anxious to see what the outcome of the international debt audit will be, given that it is essential that we regain the support of our partners,” added Sousa, recalling that the Mozambican state budget on average depends on 50% to 60% external resources. (macauhub)