Africa-Press – Mozambique. The Bank of Mozambique says that the country’s ration of public debt ratio to gross domestic product (GDP) worsened in the first half of the year, moving from the previous level of “high risk” to “severe risk” in June.
“This variation was influenced by the increase in total debt by around 2%, specifically in the internal component, which increased by around 10%, even though the external component registered a reduction of approximately 2%. In year-on-year terms, the public debt-to-GDP ratio remained at a severe risk level,” reads the Bank of Mozambique’s Financial Stability Bulletin for the first half of the year.
The debt-to-GDP ratio “worsened from a high risk level in December, 2022, to severe risk in June, 2023”, while “sovereign risk”, last June, “remained at a severe level, due to the maintenance of high levels of state debt”.
At the end of the first half of this year, the stock of Mozambican public debt, issued internally and contracted externally, amounted to 943,980 million meticais (€13,700 million), compared to 926,850 million meticais (€13,450 million) in December 2022 and 889,700 million meticais (€12,915 million) in December 2021.
According to the Bank of Mozambique, in June 2023, the sovereign risk category sub-index stood at 87.5%, after recording 75% and 87.5% in December and June, 2022, respectively.
In analysing the sub-indices that make up the risk category, the Bank of Mozambique finds that the ratio of credit to the government over total credit stood at 38.87% in June, after 44.11% in December 2022, and “remained at the severe risk level.”
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