Government of Mozambique approves regulation on issuance of public debt

6 December 2017

Negotiation, procurement and issuance of public debt in Mozambique, along with associated guarantees, from now on must comply with a regulation approved on Tuesday by the government, announced by the Minister of Economy and Finance at the end of the meeting of the Council of Ministers, held in Maputo.

The Minister of Economy and Finance also said approval of the document should lead to Mozambicans having a better perception of the issue of guarantees.

The Regulation stipulates the procedures for the government to issue debt, “what is required to issue a guarantee, which documents and procedures are required, as well as what information to send to the country’s parliament, to the Council of Ministers and to the Attorney-General of the Republic,” said Maleiane, according to daily newspaper Noticias.

The Minister noted that the regulation is of significant importance, as it will allow state bodies, as well as society in general, to understand when guarantees are issued to companies.

Two loans contracted by public companies in Mozambique with the endorsement of the State are at the basis of the decision of the International Monetary Fund (IMF) and donors to freeze aid to the Mozambican state budget. (macauhub)