The government has reduced the debt of public companies covered by state guarantees during 2024 to US$750 million (50 billion meticals), equivalent to 4% of Gross Domestic Product (GDP), according to the annual public debt report issued by the Ministry of Finance.
This amount represents a reduction of approximately US$7.8 million (558.3 million meticals) compared to 2023, corresponding to a 1% decrease in one year.
According to the document, 39% of this debt corresponds to loans with sovereign guarantees granted by the State to the State Business Sector (SEE), while 30% is associated with financing through Retrocession Agreements. Loans with State Guarantees accounted for 15%, and the remaining 16% relate to loans granted with Comfort Letters, Sovereign Letters or Treasury Bonds.
The report highlights that, throughout 2024, no new State Guarantees were issued in favour of public companies, which contributed to containing debt and the associated fiscal risk.
The granting of guarantees by the State aims to facilitate access to external and internal financing for state-owned enterprises by reducing credit risk, allowing them to obtain funds on more favourable terms for infrastructure, equipment and strategic operations.
Mozambique currently has 11 public companies, seven of which are wholly state-owned and nine are in liquidation with minority state holdings.
Source: Lusa
