Debt repayment to IMF strengthens Mozambique’s credibility, say business leaders

The Confederation of Economic Associations of Mozambique (CTA) said last Thursday that the country’s repayment of its debt to the IMF is a “significant indicator” of macroeconomic responsibility and the strengthening of international credibility, while also calling for attention to “substantial domestic debts.” “The private sector recognises and values the fulfilment of financial obligations to the International Monetary Fund, as it represents a significant signal of macroeconomic responsibility and enhances the country’s international credibility,” reads a statement from the CTA, sent to the media. The Mozambican Ministry of Finance confirmed on Thursday that it made a “full and early repayment” of €630 million to the International Monetary Fund (IMF), settling loans contracted under the Poverty Reduction and Growth Trust (PRGT) programme. According to the Ministry, this repayment represents the “early settlement of all of Mozambique’s obligations” under the PRGT programme of the IMF, amounting to US$698.588 million (€630 million).

“The challenge is to ensure that this effort is complemented by policies that stimulate domestic production, private investment, and the competitiveness of the economy. In this context, it is also important that the Government gives attention to the substantial domestic debts, signalling their progressive repayment as a way to stimulate the domestic economy,” stated the business representatives. Lusa reported last week that Mozambique fully settled its debt to the IMF in March, which had amounted to 514,040,000 SDRs (special drawing rights), equivalent to €630 million, while negotiating a new assistance programme, according to the IMF’s update.

The Ministry of Finance noted that the loans repaid by the State correspond to disbursements under the PRGT for the 2019 Rapid Credit Facility, the 2020 Rapid Credit Facility, and the 2022 Extended Credit Facility. In its latest assessment of the country, published in February, the IMF did not anticipate decisions regarding new support for Mozambique, which the Government has been negotiating for a year. The report noted that outstanding credit with the institution had reached 226% of quota.

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According to the assessment, under the last ECF programme (Extended Credit Facility), the IMF had approved financing of around US$468 million (€398.5 million) for Mozambique in 2022. However, this programme was suspended in April 2025, after approximately US$343 million (€292 million) had been disbursed in four tranches. It added that Mozambique would need to repay the IMF US$98 million in 2026, approximately US$107.5 million in 2027, US$129.3 million in 2028, and US$136.4 million in 2029.

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