Mozambique’s government is stepping up its effort to secure a new programme with the International Monetary Fund, pointing to a series of recent moves as evidence of renewed credibility.
Speaking after Tuesday’s Council of Ministers meeting, government spokesman and economic planning minister Salim Valá highlighted the decision to make an early repayment of IMF debt as proof that Maputo is serious about honouring its commitments and opening the door to new agreements. With Finance Minister Carla Loveira in Washington for the Spring Meetings, and efforts underway to renegotiate debt with the support of American financial consultants, the message is one of active re-engagement with international partners.
The full Daily Briefing continues below for Pro subscribers. Subscribers to the Zitamar News tier can read the top half, including the full leader article, here.
From the Zitamar Live Blog:
But the question is not just whether Mozambique will implement IMF-backed reforms, but whether it is currently in a position to do so.
The Fund’s diagnosis of the economy is by now familiar. Growth has remained subdued since the hidden debts crisis, poverty has risen, and external financing has yet to recover. The government’s recent steps, including repaying IMF debt ahead of schedule when it was not strictly required to do so, are intended to signal discipline. Yet they also come at a time when financing conditions are tightening.
