The debt of Linhas Áreas de Moçambique (LAM) has fallen from around 400 million dollars to 290 million dollars, the Project Director of Fly Modern Ark (FMA) said today in Maputo.

"LMA's debt has been reduced. When we joined, the debt was 402 million dollars and now I think we're at 290 million dollars," said Sérgio Matos, noting that confirmation of the current debt will be announced in next year's audit.

"This figure will be confirmed in next year's audit. This year's audit indicates that the reduction is around 340 million dollars," he said.

FMA is the South African company hired by the Mozambican state to revive the accounts of the national flag carrier. The company has been working with LAM since April 18 of this year.

"LAM's debt is falling, but not by as much as we want. We need to increase the number of fleets. That's the only way we can have more revenue," he noted.

According to him, the company "is healthy, but not very well", as they can't yet boast of making a profit. "It's managing to meet its commitments in a more relaxed way."

The debt that LAM still has to pay is owed to service providers and financial institutions. Nevertheless, according to Matos, there are still companies with debts to settle with LAM, but this guarantees a balance in the company's accounts.

"The company is minimally balanced. There are still companies that owe and many of them are already paying," he said, noting that "adjustments" are underway to readjust "suspended" contracts and "give credits". "We need to make it easier for big companies."

He did not reveal how much LAM has to collect from debtors or who they are.

The FMA promises further updates on LAM's debt restructuring strategies and stages for December 2023 or January 2024.