The government of Mozambique has issued 7.5 billion meticais (US$113 million) in domestic public debt, although the Economic and Social Plan and the State Budget for 2020 have not yet been submitted to the country’s parliament, Mozambican newspaper A Verdade reported.
The newspaper said in February Treasury Bonds in the amount of 4.5 billion meticais were issued and that on 10 March the government placed over 3 billion meticais in debt securities on the securities exchange.
“The cost of servicing domestic borrowing in 2019 was double the amount of investment in education, six times more than was spent on health, ten times more than was spent on agriculture and rural development,” the paper said.
The 2020 financial year will only start in formal terms when the government of Filipe Nyusi sees its proposals for the Economic and Social Plan and the State Budget approved by parliament. These documents will the amount of public debt authorised until December.
The first issue of Treasury Bonds took place in a special stock exchange session held on 11 February 2000, to the value of 2 billion meticais, with interest rates of between 11.25% and 15%.
The second issue of Treasury Bonds was held on 25 February and totalled 2.5 billion meticais, with demand of 9.224 billion meticais and interest rates ranging between 10.0% and 14.0%. (macauhub)