The state has announced plans to restructure its domestic debt, worth 5.2 billion meticals (81 million dollars), through a new bond issue in 2025. The operation, which will be carried out through an ‘exchange auction’, aims to replace the Treasury Bonds (OT) issued in 2021 with a new series with a maturity of five years.
According to the Mozambique Stock Exchange (BVM), the auction is scheduled for 11 March and will allow direct subscription by Specialised Treasury Bond Operators (OEOT). The new issue, called OT 2025 – first series, will have a nominal unit value of 100 meticals (1.56 dollars) and a maximum amount of 5.2 billion meticals (81 million dollars).
This operation comes in the context of growing pressure on Mozambican public finances. In 2024, interest payments on public debt increased by 12 per cent to 57.6 billion meticals (897 million dollars), compared to 49.9 billion meticals (777 million dollars) in 2023. Domestic debt, in particular, saw a 13% increase in interest payments, totalling 45.7 billion meticals (711 million dollars).
In 2024, the stock of public debt exceeded one trillion meticals (15.6 billion dollars), an increase of 9 per cent on the previous year. Domestic debt totalled 407 billion meticals (6.34 billion dollars), while external debt amounted to 636.5 billion meticals (9.91 billion dollars).
The then Ministry of Economy and Finance warned in a 2023 report of the rapid pace of growth in domestic debt, which, if maintained, could lead to an even split between domestic and foreign debt by 2029. This scenario, according to the document, would compromise the country’s financial sustainability in the medium term.
