The Ministry of Finance confirmed on Thursday, April 2, that it made a “full and early repayment” of $701.4 million to the International Monetary Fund (IMF), settling loans contracted under the Poverty Reduction and Growth Trust (PRGT).
In a statement released to Lusa, the Government recalled that the IMF’s PRGT is a window that provides concessional financing to countries like Mozambique, which face fiscal and balance-of-payments pressures.
Diário Económico clarified this week that recent IMF data indicate the outstanding credit balance fell from 514.04 million Special Drawing Rights (SDR) at the end of February to zero on March 27, after repayments of the same amount and without new disbursements during the period. In practical terms, the payment corresponds to $701.4 million.
“The authorities continue to actively collaborate with the Fund’s technical team in structuring a new program, in order to preserve macroeconomic stability and promote the country’s long-term development for the benefit of its citizens. We will continue to work with the technical team and senior officials of the international financial institution during the upcoming Spring meetings of the World Bank and IMF,” the statement added.
According to the note, 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, emphasizing that “all these programs had expired and no additional financing was expected.”
The publication added that under agreements between the Bank of Mozambique and the Ministry of Finance for these facilities, the central bank provided a guarantee for the obligations, and that, given the restricted financing conditions faced by Mozambique since late 2024, these agreements could have crystallized exposures on the balance sheet.
“The State therefore decided to repay the country’s obligations to the IMF. Early repayment preserves the central bank’s balance sheet and, in this way, its ability to consolidate macroeconomic stability,” it admitted.
In its most recent assessment, the IMF has not yet anticipated any decision regarding a new financial support program for Mozambique.
In the report approved on February 13, regarding consultations conducted in 2025, the IMF recalled that a post-financing review is scheduled for August 2026, only noting that new consultations should occur within 12 months, without providing details on the potential approval of a new program—a goal repeatedly expressed by Mozambican authorities.
Under the latest Extended Credit Facility (ECF), the IMF approved $468 million in financing for Mozambique in 2022. However, the program was suspended in April 2025 after disbursing $343 million, distributed in four tranches.
The report also detailed the planned repayment schedule. In 2026, the country was expected to pay $98 million to the institution. In 2027, the amount was $107.5 million, followed by $129.3 million in 2028 and $136.4 million in 2029.
Source: Diário Económico
