What did the IMF say about wage arrears in Mozambique?

O que o FMI disse sobre os atrasos salariais em Moçambique?

The civil service in Mozambique is experiencing salary delays as a result of the implementation of the Single Salary Table. But state employees and agents are also uncertain about the amount of their salaries.

The TSU came into force on June 9 this year. In May, the International Monetary Fund in Mozambique (IMF) recommended cuts in spending on salaries. The idea was to make reforms conditional on the wage bill becoming compatible with the approved budget.

On Monday (30), Pablo Lopez Murphy of the IMF commented on the recent delays in the payment of salaries in the civil service and presented the financial institution's perspective.

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"In our relationship with the countries that are members of the IMF, we emphasize the importance of fiscal sustainability. This means trying to have moderate deficits and fluctuations in the management of public finances. We know that there are big swings in public finances, and that's why these delays occur, even with suppliers," he explained.

It is for this reason that the institution encourages the establishment of prudent budgets where spending levels are aligned with the state's tax earnings. "It is necessary to avoid swings that could put the government in a difficult financial position."

"We think that the government should stabilize public policies in order to reduce these delays as much as possible. Be prudent to reduce these delays that affect the whole economy. It's a spiraling adversity," he said.

He was speaking on Monday (31) in Maputo during a meeting with the president of the Confederation of Economic Associations (CTA).

Murphy took the opportunity to explain that the IMF analyzes countries' economies within a holistic framework, and without "special" treatment for certain sectors.

"In general, the IMF emphasizes macroeconomic stability. Monetary policy is the main instrument for ensuring stability and reducing inflation. The people most affected by inflation are the most vulnerable, because they don't have access to money," he said

In the institution's view, the Bank of Mozambique should focus on the fight for price stability. "Mozambique has made enormous progress in this direction. We are satisfied with that."

Even so: "the Central Bank needs to do a job that benefits all sectors. All economic players benefit from price stability. We, as the IMF, do not favor sectors, and prefer to act neutrally."

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