The Mozambican government has confirmed it fully repaid its €630 million debt to the International Monetary Fund using the country’s net international reserves, assuring that the move does not compromise state finances.
Finance Minister Carla Loveira explained that the payment was made using liquid international reserves already available through global financial institutions.
“We paid the debt service we had with the IMF using the country’s net international reserves. These are financial positions already available, so there was no need to revise the state budget for this purpose,” she said in Maputo, speaking on the sidelines of national celebrations marking Mozambican Women’s Day.
Loveira stressed that the decision poses no risk to the functioning of public institutions, since the repayment was not made through the state budget.
Read more about this topic: Mozambique brings IMF debt to zero by paying €630 million
Earlier, data from the Bank of Mozambique showed that the country’s net international reserves reached a record $4.152 billion in January, ensuring coverage of more than three months of imports of goods and services.
The Mozambican Finance Ministry had already announced an “early and full repayment” of approximately €630 million tied to financing under the IMF’s Poverty Reduction and Growth Trust (PRGT).
Business leaders, including the Confederation of Economic Associations of Mozambique, described the move as an important signal of macroeconomic responsibility and improved international credibility. However, they also urged the government to address significant domestic debt and adopt consistent internal policies to ensure inclusive and sustainable growth.
