The government has set a maximum limit of 505 billion meticais ($6.8 billion) for the issuance of Treasury Bills in the 2025 fiscal year, representing an 84% increase compared to the amount authorized in 2024. More than half of this total will be allocated to debt replacement.
According to Lusa, the decision is contained in Decree No. 109/2025 from the Ministry of Finance, dated October 24 and published this Monday, which defines the terms for the issuance of short-term domestic debt for the current year.
Of the total authorized, 160 billion meticais ($2.2 billion) are intended to cover the treasury deficit, while the remaining 345 billion meticais ($4.6 billion) will be used for the replacement of existing debt. In 2024, the annual limit set for Treasury Bill issuance was 275 billion meticais ($3.7 billion). The substantial increase now authorized comes in the context of weak tax revenue performance and delays in external aid disbursements, factors that have put pressure on the State’s financing needs.
According to first-half budget execution data, net financing through Treasury Bills reached 17.7 billion meticais ($239 million), with six operations carried out during the period. The total amount issued by June reached 134 billion meticais ($1.8 billion), of which 114.8 billion meticais ($1.5 billion) corresponded to replacement operations. The document justifies the intensified use of domestic debt as necessary to ensure the implementation of the 2025 Economic and Social Plan and State Budget (PESOE), in the absence of regular external financing flows.
At the end of June 2025, the total public debt stock stood at 1.072 trillion meticais ($14.4 billion), compared to 1.043 trillion meticais ($14 billion) recorded in December of the previous year. Of this amount, 58.5% corresponds to external debt, equivalent to 627.9 billion meticais ($8.5 billion), and the remaining 41.5% to domestic debt, valued at 445 billion meticais ($6 billion).
Source: Diário Económico
