Africa-Press – Mozambique. Mozambique’s government has set a limit of 505 billion meticais (€6.816 billion) for issuing Treasury Bills in 2025, almost double that of 2024, with more than half of the proceeds going to debt replacement.
“During the 2025 financial year, the use of Treasury Bills will have a maximum limit of 505,000,000,000 meticais,” states Ministry of Finance decree 109/2025, dated 24 October and consulted by Lusa on Monday.
For 2024, the government had set a limit of 275 billion meticais (€3.712 billion) for issuing Treasury Bills (BT) with shorter maturities. The 2025 State Budget was only approved in parliament in May, due to general elections being held in October 2024.
It also stipulates that of this year’s total issuance, 160 billion meticais (€2.19 billion) will be used to “deal with the cash deficit” and the remaining 345 billion meticais (€4.657 billion) for “replacements”.
The net financing of Mozambican state expenditure on BT totalled 17,720 million meticais (€239.1 million) up to June, bringing the total indebtedness to €14.4 billion.
According to budget execution data from January to June, from the Ministry of Finance and previously reported by Lusa, Treasury Bills (BT) totalling almost 134,064 million meticais (€1.809 billion) were issued in this period.
“Replacements totalling 114,852.3 million meticais (€1.55 billion) were made, resulting in net financing of expenses totalling 17,719.5 million meticais (€239 million),” the document states, adding that six operations were carried out over the first six months of 2025.
“The growth in domestic debt is justified by the poor performance of revenue and the lack of disbursements of external resources (donations and credits), forcing the government to resort to issuing Treasury Bills and other short-term loans to finance the Treasury deficit to ensure the execution of the PESOE [Budget],” the document adds.
Overall, including operations with Treasury Bonds — with longer maturities and no new issues in the first half of the year — according to the same document, the public debt stock on 30 June totalled 1.072 trillion meticais (€14.4 billion), compared to 1.043 trillion meticais (€14 billion) on 31 December 2024.
Of this total, 58.5%, equivalent to 627,855 million meticais (€8,475 million), corresponds to external debt, which fell by 1.3% in six months, and the remaining 41.5%, totalling almost 444,995 million meticais (€6.006 billion), to internally issued debt.
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