{"id":19565,"date":"2022-05-16T16:21:37","date_gmt":"2022-05-16T16:21:37","guid":{"rendered":"https:\/\/www.africa-press.net\/mozambique\/all-news\/imf-deal-to-help-with-funding-problems-debt-vulnerabilities-standard-poors"},"modified":"2022-05-16T16:24:56","modified_gmt":"2022-05-16T16:24:56","slug":"imf-deal-to-help-with-funding-problems-debt-vulnerabilities-standard-poors","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mozambique\/all-news\/imf-deal-to-help-with-funding-problems-debt-vulnerabilities-standard-poors","title":{"rendered":"IMF deal to help with funding problems, debt vulnerabilities \u2013 Standard & Poors"},"content":{"rendered":"

Africa-Press – Mozambique. <\/strong><\/span>An agreement signed between Mozambique and the International Monetary Fund is set to help overcome the financing difficulties and debt vulnerabilities of the country, which is Africa\u2019s second most indebted after Zambia, according to credit rating agency Standard & Poor\u2019s.<\/p>\n

Mozambique\u2019s main weakness, S&P notes in an analysis released on Monday, lies in its high level of government debt, which makes it the second most indebted country in the list of 16 sub-Saharan African countries analysed in light of the impact of the Ukraine war on the banking system.<\/p>\n

In comments to Lusa, S&P analyst Giulia Filocca explained that despite these difficulties, the recent signing of an IMF programme earlier this month could \u201chelp alleviate the current financing difficulties and the vulnerability of the debt,\u201d whose total value currently stands at around 100 percent of gross domestic product.<\/p>\n

The vast majority of Mozambique\u2019s public debt is held in foreign currency; this, in addition to making the country more vulnerable to currency shocks, means it has fewer financing options.<\/p>\n

\u201cThe government has opted to increase the issuance of domestic debt, underwritten by local banks,\u201d Filocca commented to Lusa following the release of the S&P report.<\/p>\n

Domestic banks, he noted, are \u201cincreasingly financing the budget deficit, increasing the profile of short-term domestic debt and increased the volume of rolling debt in local currency.\u201d<\/p>\n

In its report on debt vulnerabilities in Africa, following Russia\u2019s invasion of Ukraine, the rating agency states that the decline in global economic growth and China\u2019s slowdown are having a negative impact on the ability of African emerging markets to accumulate debt.<\/p>\n

The fact that in markets such as Egypt, Ghana and South Africa a significant portion of domestic debt is held by foreign investors increases liquidity, but often at the cost of increased sensitivity to changes in global monetary policy, the analysts warn, concluding that many African countries have already entered this post-pandemic period with a high volume of domestic debt and large debt refinancing needs.<\/p>\n

The IMF has announced a loan to Mozambique of $470 million (\u20ac445 million) under an Extended Credit Line, noting that the authorities are implementing a broad reform agenda, which includes strengthening the management and debts of public companies, improving fiscal risk management and debt transparency, as well as strengthening public finance management and the anti-corruption framework.<\/p>\n

The declared aim is to support recovery and reduce public debt.<\/p>\n

This is the first time the IMF has financed Mozambique since the so-called \u2018hidden debts\u2019 scandal broke in 2016, when it emerged that the government had underwritten billions of dollars in loans taken out by public enterprises, without the knowledge of other state institutions or the country\u2019s creditors. The scandal triggered criminal proceedings in several countries that are ongoing.<\/p>\n

Only occasional financial aid has been provided by global institutions since then, following specific disasters such as the Covid-19 pandemic or the cyclones in 2019.<\/p>\n

For More News And Analysis About Mozambique<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Mozambique. An agreement signed between Mozambique and the International Monetary Fund is set to help overcome the financing difficulties and debt vulnerabilities of the country, which is Africa\u2019s second most indebted after Zambia, according to credit rating agency Standard & Poor\u2019s. Mozambique\u2019s main weakness, S&P notes in an analysis released on Monday, lies […]<\/p>\n","protected":false},"author":84,"featured_media":19564,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8,16],"tags":[233,281,283],"class_list":["post-19565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","category-twitter","tag-africa-press","tag-africa-press-mozambique","tag-mozambique"],"yoast_head":"\nIMF deal to help with funding problems, debt vulnerabilities \u2013 Standard & Poors - Mozambique<\/title>\n<meta name=\"description\" content=\"An agreement signed between Mozambique and the International Monetary Fund is set to help overcome the financing difficu ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/mozambique\/all-news\/imf-deal-to-help-with-funding-problems-debt-vulnerabilities-standard-poors\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IMF deal to help with funding problems, debt vulnerabilities \u2013 Standard & Poors\" \/>\n<meta property=\"og:description\" content=\"An agreement signed between Mozambique and the International Monetary Fund is set to help overcome the financing difficu ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/mozambique\/all-news\/imf-deal-to-help-with-funding-problems-debt-vulnerabilities-standard-poors\" \/>\n<meta property=\"og:site_name\" content=\"Mozambique\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-16T16:21:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-05-16T16:24:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2022\/05\/img-62827abe4ba67.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"404\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/imf-deal-to-help-with-funding-problems-debt-vulnerabilities-standard-poors#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/imf-deal-to-help-with-funding-problems-debt-vulnerabilities-standard-poors\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"IMF deal to help with funding problems, debt vulnerabilities \u2013 Standard & Poors\",\"datePublished\":\"2022-05-16T16:21:37+00:00\",\"dateModified\":\"2022-05-16T16:24:56+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/imf-deal-to-help-with-funding-problems-debt-vulnerabilities-standard-poors\"},\"wordCount\":510,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/imf-deal-to-help-with-funding-problems-debt-vulnerabilities-standard-poors#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2022\/05\/img-62827abe4ba67.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Mozambique\",\"Mozambique\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\",\"twitter\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/mozambique\/all-news\/imf-deal-to-help-with-funding-problems-debt-vulnerabilities-standard-poors#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/imf-deal-to-help-with-funding-problems-debt-vulnerabilities-standard-poors\",\"url\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/imf-deal-to-help-with-funding-problems-debt-vulnerabilities-standard-poors\",\"name\":\"IMF deal to help with funding problems, debt vulnerabilities \u2013 Standard & Poors - 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