Screengrab: Frelimo<\/p>\n
The president of Frelimo, Daniel Chapo, today described the decision to fully and early repay Mozambique\u2019s \u20ac630 million debt to the International Monetary Fund (IMF) as \u201ccourageous,\u201d emphasising that it demonstrates the country\u2019s \u201cresponsibility.\u201d<\/p>\n
Speaking at the opening of the fifth ordinary session of the Central Committee of the Mozambican Liberation Front (Frelimo), the ruling party he leads, Chapo confirmed that the repayment, made \u201cin full\u201d and \u201cin advance,\u201d used Mozambique\u2019s international reserves.<\/p>\n
\u201cThis courageous decision should be seen positively and strategically, as an unequivocal signal of macroeconomic responsibility and the strengthening of Mozambique\u2019s international stability. And because the dignity of a people has no price,\u201d Chapo said.<\/p>\n
\u201cTherefore, we will continue to adopt measures that stimulate domestic production, attract further investment by creating a more favourable business environment, and promote an increasingly competitive economy,\u201d he added, noting the government\u2019s openness to a new IMF support programme under negotiation since 2025.<\/p>\n
\u201cWe reaffirm our commitment to strengthening the strategic partnership with the IMF and other bilateral and multilateral partners on a mutually beneficial and respectful basis,\u201d he said.<\/p>\n
The news agency Lusa reported this week that Mozambique\u2019s net international reserves (NIR) soared to a new record of $4.258 billion (\u20ac3.862 billion) in February, before the government used them in March to settle the IMF debt.<\/p>\n
These reserves \u2013 foreign currency required for the import of goods and services \u2013 had risen 1% in September, according to a statistical report from the Bank of Mozambique accessed by Lusa, to $3.937 billion (\u20ac3.409 billion), maintaining similar levels in October after a previous peak of $4.035 billion (\u20ac3.494 billion) in August.<\/p>\n
From December to January, reserves rose by almost 1%, covering over four months of import needs, and again in February to a new high.<\/p>\n
The Mozambican finance minister confirmed on Tuesday that the repayment to the IMF does not compromise state institutions.<\/p>\n
\u201cWe paid the debt service to the IMF using the country\u2019s NIR. These are reserves already available at the level of international financial institutions,\u201d explained Carla Loveira.<\/p>\n
She clarified that the resources used for the full and early repayment of \u20ac630 million to the IMF \u201care financial positions the country holds,\u201d and no \u201cbudgetary adjustment was needed for this purpose.\u201d<\/p>\n
According to Loveira, there is no risk to the functioning of state institutions, as the repayment was not made using the national budget.<\/p>\n
The Ministry of Finance confirmed on Thursday that it made a \u201cfull and early repayment\u201d of \u20ac630 million to the IMF, settling loans contracted under the Poverty Reduction and Growth Trust (PRGT).<\/p>\n
In a statement, the ministry noted that Mozambique repaid \u201call obligations\u201d associated with the IMF PRGT programme, totalling $698,587,604 (\u20ac630 million).<\/p>\n
Mozambican business leaders welcomed the debt settlement, saying it strengthens external partner confidence and creates conditions for deeper economic and financial cooperation, while cautioning that macroeconomic stability must be supported by \u201cconsistent domestic measures that promote inclusive and sustainable growth.\u201d<\/p>\n
Source: Lusa<\/p>\n","protected":false},"excerpt":{"rendered":"Screengrab: Frelimo The president of Frelimo, Daniel Chapo, today described the decision to fully and early repay Mozambique\u2019s…\n","protected":false},"author":2,"featured_media":384189,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":["post-384188","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/384188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=384188"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/384188\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/384189"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=384188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=384188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=384188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}