{"id":22776,"date":"2022-07-12T16:01:16","date_gmt":"2022-07-12T16:01:16","guid":{"rendered":"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt"},"modified":"2022-07-12T16:08:24","modified_gmt":"2022-07-12T16:08:24","slug":"strategy-recommends-changes-in-the-composition-of-mozambican-public-debt","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt","title":{"rendered":"Strategy recommends changes in the composition of Mozambican public debt"},"content":{"rendered":"

Africa-Press – Mozambique. <\/strong><\/span>A document published by the Mozambican Ministry of Economy and Finance (MEF) recommends that the country stops borrowing as much as it does from the country\u2019s banks and resorts more to concessional loans from abroad.<\/p>\n

The objective is to have a more sustainable debt, which will represent 64.7% of the Gross Domestic Product (GDP), instead of the 85% of the GDP at the end of 2021 considered in the document<\/p>\n

The MEF estimated Mozambican public debt at US$13.9 billion (\u20ac13.72 billion), an increase in the debt \u2018stock\u2019 of 71% compared to 2014.<\/p>\n

While external debt \u201cincreased only 47%\u201d in those seven years, internal debt increased by more than 220% in the same period \u2013 and today represents a quarter of total public debt.<\/p>\n

\u201cThis expansive dynamic of domestic indebtedness was determined by the need to finance a growing primary deficit\u201d in the face of \u201ca persistently adverse macroeconomic situation\u201d, the document claims, indicating an increase in the intensity and frequency of natural disasters, restrictions imposed by Covid-19 and terrorism in Cabo Delgado.<\/p>\n

The MEF\u2019s \u2018Medium-Term Strategy for Public Debt Management\u2019, consulted today by Lusa, recommends \u201can incremental increase in the proportion of external financing from 30% in 2022 to 55% in 2025, corresponding to a gradual reduction of internal financing from 70% to 45%\u201d, in the same period.<\/p>\n

\u201cThe external component should be entirely and exclusively covered by concessional loans\u201d, while in the internal portfolio the proportion of short-term Treasury Bills (BT) \u201cwill be progressively reduced from 35% in 2022 to 15% in 2025\u201d.<\/p>\n

The Treasury Bills \u2013 which are almost all absorbed in the investment portfolios of the five largest banks, should be \u201cgradually replaced by debt instruments with longer maturity\u201d, from eight to 10 years, the document details.<\/p>\n

READ: Mozambique: Treasury bills increase debt, central bank warns \u2013 Not\u00edcias<\/b><\/p>\n

The strategy recognizes that the feasibility of the scenario depends on \u201creforms aimed at boosting the secondary market\u201d, such as insurance companies and pension funds, so that they are interested in subscribing to those instruments.<\/p>\n

According to the document, \u201cthe mobilization and dynamism of institutional investors as a preferred niche for long-maturity debt securities could enable an effective dispersion of securities beyond commercial banks.\u201d<\/p>\n

This will also allow banking to stop focusing on public debt and allow bank credit to reach other sectors of the economy, it adds.<\/p>\n

On the \u201cexternal mobilization front\u201d, the document foresees the resumption of confidence in Mozambique, with the replacement of a financial program with the International Monetary Fund (IMF) \u2013 approved by the fund on May 9 \u2013 which will lead to \u201ca greater soundness of macro fiscal policies\u201d and improvement of the sovereign\u2019s rating.<\/p>\n

This is the third medium-term strategy document for public debt management: the first covered the 2011-2015 period, during which the Mozambican government contracted around US$2.3 billion sovereign-guaranteed loans in what became known as the \u2018hidden debt\u2019 scandal, which led Mozambique\u2019s financial default.<\/p>\n

Mozambique\u2019s Minister of Economy and Finance, Max Tonela, believes that the document will put Mozambique on the path of \u201cgood international practices\u201d and sends the \u201cright signals\u201d to creditors.<\/p>\n

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

Africa-Press – Mozambique. A document published by the Mozambican Ministry of Economy and Finance (MEF) recommends that the country stops borrowing as much as it does from the country\u2019s banks and resorts more to concessional loans from abroad. The objective is to have a more sustainable debt, which will represent 64.7% of the Gross Domestic […]<\/p>\n","protected":false},"author":84,"featured_media":22775,"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-22776","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":"\nStrategy recommends changes in the composition of Mozambican public debt - Mozambique<\/title>\n<meta name=\"description\" content=\"A document published by the Mozambican Ministry of Economy and Finance (MEF) recommends that the country stops borrowing ...\" \/>\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\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Strategy recommends changes in the composition of Mozambican public debt\" \/>\n<meta property=\"og:description\" content=\"A document published by the Mozambican Ministry of Economy and Finance (MEF) recommends that the country stops borrowing ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt\" \/>\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=\"2022-07-12T16:01:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-12T16:08:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2022\/07\/postQueueImg_2-62cd9c5317476.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1083\" \/>\n\t<meta property=\"og:image:height\" content=\"613\" \/>\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=\"3 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\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Strategy recommends changes in the composition of Mozambican public debt\",\"datePublished\":\"2022-07-12T16:01:16+00:00\",\"dateModified\":\"2022-07-12T16:08:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt\"},\"wordCount\":516,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2022\/07\/postQueueImg_2-62cd9c5317476.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\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt\",\"url\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt\",\"name\":\"Strategy recommends changes in the composition of Mozambican public debt - Mozambique\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2022\/07\/postQueueImg_2-62cd9c5317476.jpg\",\"datePublished\":\"2022-07-12T16:01:16+00:00\",\"dateModified\":\"2022-07-12T16:08:24+00:00\",\"author\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"description\":\"A document published by the Mozambican Ministry of Economy and Finance (MEF) recommends that the country stops borrowing ...\",\"breadcrumb\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt#primaryimage\",\"url\":\"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2022\/07\/postQueueImg_2-62cd9c5317476.jpg\",\"contentUrl\":\"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2022\/07\/postQueueImg_2-62cd9c5317476.jpg\",\"width\":1083,\"height\":613,\"caption\":\"Strategy recommends changes in the composition of Mozambican public debt\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.africa-press.net\/mozambique\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Strategy recommends changes in the composition of Mozambican public debt\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/#website\",\"url\":\"https:\/\/www.africa-press.net\/mozambique\/\",\"name\":\"Mozambique\",\"description\":\"Just another Africa News Agency Sites site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.africa-press.net\/mozambique\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\",\"name\":\"cfeditoren\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g\",\"caption\":\"cfeditoren\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Strategy recommends changes in the composition of Mozambican public debt - Mozambique","description":"A document published by the Mozambican Ministry of Economy and Finance (MEF) recommends that the country stops borrowing ...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt","og_locale":"en_US","og_type":"article","og_title":"Strategy recommends changes in the composition of Mozambican public debt","og_description":"A document published by the Mozambican Ministry of Economy and Finance (MEF) recommends that the country stops borrowing ...","og_url":"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt","og_site_name":"Mozambique","article_publisher":"https:\/\/www.facebook.com\/AfricaPressTunisiaa","article_published_time":"2022-07-12T16:01:16+00:00","article_modified_time":"2022-07-12T16:08:24+00:00","og_image":[{"width":1083,"height":613,"url":"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2022\/07\/postQueueImg_2-62cd9c5317476.jpg","type":"image\/jpeg"}],"author":"cfeditoren","twitter_card":"summary_large_image","twitter_misc":{"Written by":"cfeditoren","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt#article","isPartOf":{"@id":"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt"},"author":{"name":"cfeditoren","@id":"https:\/\/www.africa-press.net\/mozambique\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"headline":"Strategy recommends changes in the composition of Mozambican public debt","datePublished":"2022-07-12T16:01:16+00:00","dateModified":"2022-07-12T16:08:24+00:00","mainEntityOfPage":{"@id":"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt"},"wordCount":516,"commentCount":0,"image":{"@id":"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2022\/07\/postQueueImg_2-62cd9c5317476.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\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt","url":"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt","name":"Strategy recommends changes in the composition of Mozambican public debt - Mozambique","isPartOf":{"@id":"https:\/\/www.africa-press.net\/mozambique\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt#primaryimage"},"image":{"@id":"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2022\/07\/postQueueImg_2-62cd9c5317476.jpg","datePublished":"2022-07-12T16:01:16+00:00","dateModified":"2022-07-12T16:08:24+00:00","author":{"@id":"https:\/\/www.africa-press.net\/mozambique\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"description":"A document published by the Mozambican Ministry of Economy and Finance (MEF) recommends that the country stops borrowing ...","breadcrumb":{"@id":"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt#primaryimage","url":"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2022\/07\/postQueueImg_2-62cd9c5317476.jpg","contentUrl":"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2022\/07\/postQueueImg_2-62cd9c5317476.jpg","width":1083,"height":613,"caption":"Strategy recommends changes in the composition of Mozambican public debt"},{"@type":"BreadcrumbList","@id":"https:\/\/www.africa-press.net\/mozambique\/all-news\/strategy-recommends-changes-in-the-composition-of-mozambican-public-debt#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.africa-press.net\/mozambique\/"},{"@type":"ListItem","position":2,"name":"Strategy recommends changes in the composition of Mozambican public debt"}]},{"@type":"WebSite","@id":"https:\/\/www.africa-press.net\/mozambique\/#website","url":"https:\/\/www.africa-press.net\/mozambique\/","name":"Mozambique","description":"Just another Africa News Agency Sites site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.africa-press.net\/mozambique\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.africa-press.net\/mozambique\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb","name":"cfeditoren","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.africa-press.net\/mozambique\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g","caption":"cfeditoren"}}]}},"_links":{"self":[{"href":"https:\/\/www.africa-press.net\/mozambique\/wp-json\/wp\/v2\/posts\/22776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.africa-press.net\/mozambique\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.africa-press.net\/mozambique\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/mozambique\/wp-json\/wp\/v2\/users\/84"}],"replies":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/mozambique\/wp-json\/wp\/v2\/comments?post=22776"}],"version-history":[{"count":0,"href":"https:\/\/www.africa-press.net\/mozambique\/wp-json\/wp\/v2\/posts\/22776\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/mozambique\/wp-json\/wp\/v2\/media\/22775"}],"wp:attachment":[{"href":"https:\/\/www.africa-press.net\/mozambique\/wp-json\/wp\/v2\/media?parent=22776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.africa-press.net\/mozambique\/wp-json\/wp\/v2\/categories?post=22776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.africa-press.net\/mozambique\/wp-json\/wp\/v2\/tags?post=22776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}