The Governor of the Bank of Mozambique (BM), Rogério Zandamela, points to the high levels of state indebtedness as one of the main factors preventing the implementation of economic reforms.

According to Zandamela, the Mozambican government, public sector, corporate sector, families and households are all "heavily in debt".

Speaking in Rwanda at a high-level meeting on the "Role of Central Banks", the Governor of the Central Bank said that in this scenario it is difficult to operate monetary, financial and prudential policies.

He asked how the WB should react in this environment "to achieve financial and monetary stability".

"What we have done recently, in the last eight to ten years, at least since 2016, is to accept that the country's challenges take place in a universe of uncertainty, where things are getting worse.... and that having 'cushions' would be the only solution to get the central bank under control," he said. (Source: STV)