The Minister of Finance, Carla Louveira, assures that reflections are underway on the possible actions that can be taken by the country for the sustainability of public debt in the coming years, in a context of rising credit volumes. 

The need to better deal with this item is not just because of its increase, but because of the threat and pressure it could put on the state budget.

This position was recently defended by Finance Minister Carla Louveira on the sidelines of a Parliament session.

The Finance Minister explained that the country has had a public debt strategy in place since 2022.

However, he explained that there is a need from 2025 onwards for Mozambique to reflect on and develop new actions that will culminate in the revision of this instrument, which should be in force between 2026 and 2029, in order to achieve more efficient results.

"What we are doing in the current period is essentially what is set out in the current strategy, providing for some government instruments to refinance itself," he said.

According to the minister, the new actions to be implemented are expected to be the result of an inclusive process, with the participation of members of the financial system, consultants from the World Bank, the International Monetary Fund, among other crucial entities in the field.

The issue of public debt has been constantly highlighted lately.

The Bank of Mozambique said a few days ago that the pressure on domestic public debt continues to worsen. It specified that this item, excluding loan and lease contracts and outstanding liabilities, stands at 447.2 billion meticais, which represents an increase of 31.7 billion compared to December 2024.

In the period from January to December 2024, the total stock of public debt increased by nine percent compared to the same period in 2023.

According to the Balance of the Economic and Social Plan and the State Budget, the external debt increased by 1.4 percent, mainly due to the adjustment of data associated with the migration to the new debt management system. (Text: Jornal Notícias)