In the first quarter of 2024, the total direct debt stock of Mozambique's state-owned companies fell by 1.6% compared to the fourth quarter of 2023, from 39 billion Meticais to 38.4 billion Meticais (from 612.4 million dollars to 603 million dollars at the current exchange rate).

According to the Public Debt Report for the first quarter of 2024, released by the Ministry of Economy and Finance (MEF), and quoted by AIM, this performance is essentially due to the 3.34% reduction in the stock of direct domestic debt, largely due to debt servicing, as well as the adoption of the measure of contracting new financing only when essential and duly substantiated.

"The stock of Direct Domestic Debt of Public Companies stood at 20.9 billion Meticais, which represents a reduction of 722.3 million Meticais (3.34%) compared to the fourth quarter of 2023. This variation is the result of the contraction in the debt stock of both subsidiary companies by 559.18 million Meticais (5.89%) and public companies by 163 million Meticais (1.34%) compared to the previous quarter," reads the document that AIM had access to.

On the other hand, the document notes that the External Debt of State Companies increased by 0.36%, from 273.5 million dollars in the fourth quarter of 2023 to 274.5 million dollars, as a result of the increase in the stock of 8.83 million dollars relating to the Electricity Company (EDM), which can be explained by the devaluation of the South African Rand against the US Dollar and 2.5 million dollars recorded by the telecommunications company (TMCEL), explained by the accumulation of arrears with the South African Development Bank.

According to the note, the companies that stood out most in terms of their contribution to reducing the stock of domestic debt were: the fuel company Petromoc, whose balance fell by 512.52 million meticais (81.86%) and Aeroportos de Moçambique, which paid off 152.98 million meticais, equivalent to a reduction of 4.75%. (AIM)