Mozambique’s public debt is much higher than the average for the members of the Southern African Development Community (SADC), and it is vital to return it to sustainable levels, said the representative of the International Monetary Fund (IMF) in Mozambique in Maputo on Monday.

Presenting the latest IMF report on the economic outlook for sub-Saharan Africa, Ari Aisen recalled that Mozambique’s public debt reached 110.1% of GDP in 2018 and is expected to continue to rise to 130.3% of GDP by 2022.

The IMF representative also said that the fact that the Mozambican government is negotiating debt restructuring with creditors, in particular of the US$2 billion debts owed by public companies, is positive, but added that it is necessary to ensure the process provides results quickly.

At a meeting held in March in London, the Mozambican government proposed a 50% pardon of interest arrears, or US$124.5 million of US$249 million, and three restructuring options that extend the repayment deadlines, both of interest and of capital amortisation. (macauhub)