The government confirmed on Wednesday, March 4, that it continues to negotiate a new Extended Credit Facility (ECF) programme with the International Monetary Fund (IMF), stressing that the institution’s recent assessment was conducted as part of its regular consultations and did not provide any indication regarding new financing.
Speaking at an informal meeting with journalists in Maputo, government officials addressed public speculation surrounding the IMF’s latest review, noting that the absence of references to a new programme does not signal a halt in negotiations. Talks for a new ECF arrangement have been ongoing since April last year.
“The possibility remains open, and the process is still under negotiation with the IMF,” a government source said, adding that the February assessment followed a mission carried out in November.
The IMF has not yet signalled any decision on a new financial support programme for Mozambique, at a time when the country’s outstanding credit with the institution stands at 226% of its quota, according to the latest review.
In a report approved on February 13 following the 2025 Article IV consultations, the IMF stated that a post-financing assessment is scheduled for August 2026. It added that new consultations are expected within 12 months but provided no details on the potential approval of a new programme — an intention repeatedly expressed by Mozambican authorities.
Under the previous ECF arrangement, the IMF approved $468 million in financing for Mozambique in 2022. However, the programme was suspended in April 2025 after $343 million had been disbursed in four tranches.
The report also outlines the repayment schedule: $98 million in 2026; $107.5 million in 2027; $129.3 million in 2028; and $136.4 million in 2029 — maintaining significant pressure on external accounts and public financing needs.
Last week, the government said it is intensifying efforts to implement IMF recommendations, aiming to strengthen governance, public administration and transparency practices.
Following a Council of Ministers meeting, government spokesperson Inocêncio Impissa highlighted progress made, particularly Mozambique’s removal from the “grey list” of the Financial Action Task Force (FATF) on money laundering and terrorist financing, after nearly three years of reforms.
Source: Diário Económico
