Mozambeki’s executive official wants to create a legal limit for the public debt, whose shares in 2024 reached 74.20 % of GDP (GDP), a procedure stipulated in the government Fiveenote program (PQG), to be discussed by Parliament.
The document, which Losa consulted and will be smooth in the coming weeks in the first ordinary parliamentary session of the legislature, which started last Wednesday, provides the “macroeconomic stability” program by 2029, which “aims to ensure a stable, balanced and sustainable economic environment, with a focus on financial subscription, home motivation and investment.”
“The restructuring of the current public debt to more convenient conditions and the creation of clear limits for public debt,” says, among the measures in the program, such as the extension of the tax base and the promotion of “property rights in implementing revenues of exploration of natural resources” or “re -negotiation” “these absorption contracts.
Also, part of these “strategic measures” of the program is the implementation of “strict measures and effective supervision of the financial sector”, to “enhance transparency, integration and responsibility of financial institutions”, “increasing efficiency in collecting and managing revenues and combating tax authorities”, “which contains general expenses” and “unifying reform in the public ensequent”.
“Providing long -term savings, investment incentives and promoting financial education,” are other business priorities.
PQG 2025-2029, the goals of total economic stability, the first of the executive authority led by President Daniel Chapo, invested in jobs in
January, they refer to the state revenue from 24.6 % of GDP by 2024 to 25.4 % in 2029, and the state expenditures were reduced from 35.40 % to 32.88 %.
The public debt arrow is already expected to decrease from 74.20 % of GDP by 2024 to 60.80 % in 2029, compared to the average annual economic growth expected by 4.6 %, compared to 1.9 % last year.
Mozambique warned this week that pressure on the public debt issued internally continued, as it increased 11.6 billion metaca (168.7 million euros) since the last evaluation issued by the central bank two months ago.
“The pressure on the internal public debt is still getting worse,” said the central bank in information about the CPMO meeting, which took place on Wednesday in Mapoto.
He adds that the internal public debts, with the exception of mutual responsibilities, rental and the responsibilities of the arrears, amounted to 447.2 billion mits (6.505 million euros) at the end of December, an increase of 31.7 billion metaca (461.1 million euros) in the debts issued internally in 2024.
At the previous meeting, on January 27, CPMO has already referred to the same pressure on the internal debt and has so far formed 435.6 billion mitika (6337 million euros), which increased by 11.6 billion metaca (168.7 million euros) compared to the evaluation of this week.
This warning coincides with the decision of the S&P Financial Agency (S&P) of the Citizenship and the Poor (S&P), which descended from the classification of public debt issues of Mozambique Interior for Partial Violation, due to delay in creditors and changes in debt issuance, as LUSA reported on Monday.
“This means that we have almost a speculative debt tool. Being rackets, a few investors will need this title, this instrument, in its wallet.”
He added, “He undermines investor confidence. This has effects on obtaining external credit for families and the state,” which confirms that some investors can want to “liberate” from the titles of the debt of Mozambican in which they invested.
