Mozambique’s government on 8 October set out a plan to settle arrears of up to 81.3 billion meticais ($1.27 billion), including 38.9 billion meticais in unpaid bills to suppliers. Finance Minister Carla Louveira said old debts will be validated within 90 days, small suppliers will receive 6 billion meticais a year, and no spending will be allowed without budget cover. Wages and debt service absorb 86% of monthly revenue, and the government is negotiating a new loan programme with the International Monetary Fund (IMF), which plans another mission in November. Clearing arrears would ease cash shortages for local firms, while tighter spending controls are likely conditions for IMF support.
Sources
- Club of Mozambique (AIM): https://clubofmozambique.com/news/mozambique-government-announces-plan-to-pay-its-81-3-billion-meticais-debt-to-suppliers-aim/
- Club of Mozambique (Lusa): https://clubofmozambique.com/news/mozambique-expects-good-news-from-imf-regarding-new-support-program-says-minister/
- Club of Mozambique (AIM): https://clubofmozambique.com/news/bank-of-mozambique-shares-details-on-new-mandatory-reserve-requirement-regime/