The Bank of Mozambique (BoM) announced on Tuesday 2 April that the country’s domestic indebtedness grew by 10% in the first three months of 2024, to around 344 billion meticals.
In its most recent report on the economic situation, the organisation explains that “domestic public indebtedness increased due to the accumulation of credits contracted internally, which totalled 31.6 billion meticals”.
The document emphasises that the stock of domestic public debt, as a function of the wealth produced in the country, went from the equivalent of 23.7% of the Gross Domestic Product (GDP) in December to 22.4% in March”.
“In March, the ‘stock’ of domestic debt with Treasury Bills (BT) with shorter maturities totalled 94.1 billion meticals, in Treasury Bonds (OT) with longer maturities it represented 168.6 billion meticals and advances from the Bank of Mozambique already totalled 81.2 billion meticals,” he points out.
In 2023, the state issued 36.4 billion meticals in OT, below the stipulated maximum of 36.6 billion meticals
For 2024, the government has set a maximum limit of 45.7 billion meticals for issuing OT, while 275 billion meticals have been set for Treasury Bills, of which 45 billion will be used “to deal with the cash deficit” and 230 billion “to replace” previous issues.
