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The Bank of Mozambique has warned that delays in the payment of domestic and external public debt continue to affect the functioning of the financial system, reducing demand for government securities and increasing pressure on the money and interbank markets.
The warning is contained in the final communiqué of the Monetary Policy Committee meeting held on Wednesday, 30 September, in Maputo.
According to the central bank, payment delays persist both with domestic financial institutions and multilateral creditors.
The institution says the situation is contributing to weak demand for government securities, rigidity in money and interbank market interest rates, and a more unfavourable assessment of the country’s risk profile.
The warning comes at a time when public debt remains high. According to data from the Ministry of Finance, Mozambique’s public and publicly guaranteed debt reached around US$17.9 billion at the end of the second quarter of 2026.
During the same period, central government debt stood at around 1.11 trillion meticais, equivalent to 73.6% of Gross Domestic Product.
Domestic debt increased by around 3% in the second quarter, rising from approximately 529.8 billion to 545.4 billion meticais, driven by new issuances and the rollover of interest on Treasury Bonds.
External debt, meanwhile, recorded a slight decline, standing at around US$8.85 billion.
Commenting on the impact of the debt burden, Bank of Mozambique Governor Felisberto Navalha acknowledged the constraints caused by the banking system’s exposure to domestic debt, but expressed confidence that the Government is preparing fiscal consolidation measures.
Navalha said the next State Budget should outline measures aimed at improving the condition of public finances and reducing pressure on the financial system.
According to the governor, market developments will also depend on how the State plans to finance its budgetary needs during the final months of this year and throughout 2027.
The Bank of Mozambique considers the normalisation of debt payments important not only for the banking system, but also for the State itself, as it could help improve liquidity and the overall functioning of financial markets.
The debt warning comes in the same context in which the Monetary Policy Committee decided to keep the benchmark MIMO policy rate unchanged at 9.25%.
Zimbabwean businessman Wicknell Chivayo and his wife, Lucy Muteke, died on Wednesday, 30 September, following a helicopter crash in rural Marondera, southeast of Harare, the capital of Zimbabwe.
A Flydubai flight travelling from Dubai, in the United Arab Emirates, to Tel Aviv, Israel, was diverted to Saudi Arabia after one of the pilots stabbed his colleague during the journey, in an incident that caused the aircraft to descend sharply and forced passengers and crew members to intervene.
The Port of Beira, in Mozambique's Sofala Province, is set to strengthen its cereal import and handling operations as part of the government's new strategy to centralise rice imports and improve the efficiency of port procedures.
Mozambican musician Stewart Sukuma will represent Mozambique at the 8th edition of the Arts and Culture Festival between China and Portuguese-speaking Countries in Macau, where he has been announced as one of the event's main performers, according to the Macao Cultural Affairs Bureau.
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Maputo Municipal Council has announced plans to support the reconstruction of market stalls destroyed by a fire that broke out at Xikhelene Market on Friday, 25 September, destroying at least 15 commercial establishments and two warehouses.
Three researchers from the Manhiça Health Research Centre (CISM), in Maputo Province, have joined an international commission proposing a new approach to preparing for and responding to future pandemics, with particular emphasis on protecting the most vulnerable populations.
The cities of Maputo and Matola are at risk of low to moderate flooding over the next 48 hours due to forecasts of moderate to heavy rainfall in southern Mozambique, according to an alert issued on Wednesday, 30 September, by the National Directorate of Water Resources Management (DNGRH).
King Mohammed VI appointed Fatima Ezzahra El Mansouri as Morocco's head of government on Tuesday, 29 September, making her the first woman to hold the position in the country's history. The appointment follows her party's victory in the parliamentary elections held on 23 September.
