The Ministry of Economy and Finance clarified this Wednesday that the loan of 88.7 million dollars, concluded with South Korea's Exim Bank for public security, is legally covered.

The loan, taken out for the "reinforcement of the maintenance and security of public order," is within the annual limit established by the State Budget Law, a document that was approved by parliament and that sets the conditions for the Government to resort to external loans, according to a note from the Ministry of Economy and Finance to which Lusa had access this Wednesday.

"The Government is authorized to borrow externally with minimum concessionality element of 28% for economically viable infrastructure projects. The concessionality grade of the project is 73.74%. It is on the basis of this competence that the concessional credit, in favor of the Ministry of Interior, was contracted," the note adds.

The resolution ratifying the credit agreement for the loan was approved by the government last week, but the project, called Public Security Information and Management System, was announced in March at an event attended by the Mozambican Minister of Foreign Affairs and Cooperation, Veronica Macamo, and the South Korean Ambassador to Mozambique, Yeo Sung jun.

At the time, the parties indicated that the project aimed to build modern operating rooms and set up surveillance equipment in the city of Nampula and Nacala Porto, in the north of the country.

The approval of the loan has been generating debate in recent days, with some segments of society criticizing an alleged secrecy about the process, as occurred with the contraction of the so-called hidden debts, which also had security issues as a protest and were secretly endorsed by the government without the knowledge of parliament and the Administrative Court.

Lusa Agency