By Noémia Mendes
Maputo (MOZTIMES) – The Mozambican State has accumulated an outstanding debt of 115.3 billion Meticais with the Central Bank since 2005, according to the independent auditor’s report on the 2024 Financial Statements, released on Monday.
The audit resulted in a qualified opinion, pointing out that the State has failed to fulfil responsibilities stipulated in the Organic Law. The debt relates to outstanding balances stemming from exchange rate fluctuations, which the state must, by law, acknowledge and compensate through the issuance of public debt securities in favour of the Bank of Mozambique.
However, the report on the 2024 accounts states that, according to the auditor, “the Mozambican State has not met its obligations since the 2005 financial year. "
The report also notes that the Bank of Mozambique failed to record in its accounts the interest and income related to this debt, which totals 27.6 billion Meticais. These amounts were excluded from both the institution's individual and consolidated financial statements.
Economist Egas Daniel commented that although the specific terms of the contract between the State and the Bank are not public, the systematic failure to meet financial obligations carries serious consequences for the country's risk perception.
“When the State fails to honour its commitments, even internal ones, it sends a signal of weakness to international creditors and investors,” said Daniel.
The potential consequences include an increase in the cost of external financing and greater difficulty in accessing international credit, as the country’s risk rating may be downgraded.
“Lower confidence leads to less financing, or at the very least, to much higher interest rates for the country,” the analyst noted. (NM)
