Mozambique government increases domestic public debt

24 July 2017

Mozambique’s domestic public debt stood at 95.87 billion meticais (US$1.546 billion), according to figures from the periodical “Economic Environment and Inflation Prospects” bulletin published by the Bank of Mozambique last week.

Domestic public debt can be split into 47.322 billion meticais obtained from the Bank of Mozambique, 15.206 billion meticais in Treasury Bills (short-term debt securities) and 33.342 billion meticais in Treasury Bonds.

The central bank said the government continued to use Treasury Bills to finance the budget deficit, having issued 621 million meticais in April and May.

Direct financing of the Bank of Mozambique reached 12.164 billion meticais by the end of the first quarter.

The International Monetary Fund (IMF) drew attention to the fact that growth of domestic public debt put pressure on credit institutions and led to a decrease in the availability of resources to lend to the private sector.

Government debt issues have filled the external financing gap since April last year, when donors suspended their support following the discovery of debts hidden by the previous government. (macauhub)