The stock of direct domestic debt of the State Enterprise Sector (SEE) stood at 24.3 billion (or billions) of Meticais, representing a reduction of 6.83% (1.7 billion Meticais), compared to the fourth quarter of 2022. Recently published by the Ministry of Economy and Finance (MEF), the Quarterly Bulletin on Public Debt explains that the reduction was due to the deceleration of the debt of state-owned companies by 12.86% and public firms by 1.52% compared to the previous quarter.
“The companies that stand out the most due to their contribution to the reduction of the domestic debt stock were: PETROMOC, S.A which settled 972.19 million meticais, equivalent to a reduction of 34.64 p.p, followed by LAM, S.A which settled 443.27 million MT and CFM, E.P whose balance decreased by 174.92 million meticais (1.92%)”, details the report.
The Report describes that the structure of the direct debt of the ESS by currency continues to be predominantly denominated in foreign currency, with emphasis on the US dollar which absorbed 66.34% of the total stock, despite the reduction of 0.5% compared to the previous quarter. Next is the Metical with a weight of 32.6%. The Euro had little expression, with the balance being equivalent to 1.1% of the stock of direct debt of the ESS on 31 March 2023.
The document adds that this performance is essentially the result of the fulfilment of debt service by SEE companies, as well as the policy of contracting new financing only when strictly necessary. Overall, in the first quarter of 2023, the total stock of public debt (Central Government and Public Companies) stood at 940.6 billion Meticais, representing an increase of 2% compared to the fourth quarter of 2022, due to the 9% increase in domestic debt, reflecting the issuance of Treasury Bonds for current expenses.
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