The government has confirmed that it plans to discuss a potential new financial assistance program during the visit of the International Monetary Fund (IMF) mission, which will take place from June 8 to 12, noting that the fiscal consolidation measures implemented in the country will also be assessed.
According to a statement from the Ministry of Finance, cited by Lusa, the delegation’s arrival in Mozambique is part of the ongoing relationship between the government and the international financial institution. “The meetings will focus on identifying ways to reduce macroeconomic imbalances, with a view to a potential Credit Facility Program,” the statement said.
According to the document, meetings are scheduled with various government sectors, noting that the group is led by Pablo López Murphy, head of the IMF team for Mozambique. “The visit follows a mission conducted in December of last year, as part of regular contacts between the parties,” it concluded.
The Ministry of Finance confirmed on Thursday, April 2, that it had made a “full and early repayment” of $701.4 million to the International Monetary Fund, settling loans contracted under the Poverty Reduction and Growth Trust (PRGT).
In a statement, the government noted that the IMF’s PRGT is a facility that provides concessional financing to countries like Mozambique, which face fiscal and balance-of-payments pressures.
The government stated at the time that it had drawn on the country’s net international reserves to service its debt to the International Monetary Fund, assuring that the decision would not compromise state institutions.
“We paid the debt service to the IMF by drawing on the country’s international liquid reserves. These are financial positions that Mozambique holds, so there was no need for a budget amendment for this purpose,” said Finance Minister Carla Loveira.
Diário Económico clarified that IMF data indicate the outstanding credit balance fell from 514.04 million Special Drawing Rights (SDR) at the end of February to zero as of March 27, following repayments in the same amount and with no new disbursements during the period. In practical terms, the payment amounts to $701.4 million.
According to the government’s statement, the loans repaid by the state correspond to financing disbursed by the IMF under the PRGT for the 2019 Rapid Credit Facility, the 2020 Rapid Credit Facility, and the 2022 Extended Credit Facility, noting that “these programs had all expired and no additional financing was expected.”
