The Mozambican debt increased by 910.8 million meticais (12.1 million euros) in the second quarter, due to rising domestic issuances, according to a report from the Ministry of Finance accessed by Lusa today.
The report indicates that Mozambique’s debt stock reached 1.072 trillion meticais (14.3 billion euros) by the end of June, marking an increase of 0.1% compared to the first quarter of 2025.
The document, detailing public debt evolution from April to June, explains that the “performance is primarily due to the increase in domestic debt” by 0.4% compared to the previous three months, resulting in a stock of almost 445 billion meticais (5.9 billion euros).
This increase stems from “new debt issuances under the Central Bank’s Credit Facility (21.6% of the total domestic debt stock),” it reads.
By the end of the second quarter, Mozambique’s external debt amounted to 627.855 million meticais (8.371 billion euros), showing a 0.1% decline from the previous three months, attributed to “debt service compliance” and the “government’s commitment to prioritize borrowing at highly favorable conditions,” according to the document.
The Mozambican government previously warned of a “significant impact” on domestic public debt service in case of rate fluctuations, considering the stock increase, projecting to spend 267 million euros in September alone.
“Given the increase in domestic debt stock in recent years, an interest rate shock would have a very significant impact on internal debt service,” states the Medium-Term Fiscal Scenario (CFMP) for 2026 to 2028, a document reported by Lusa at the end of July.
The report highlights that current data show “a concentration of payments in specific periods, which may pressure the public treasury, requiring constant monitoring throughout the period.”
In September, “scheduled payments for amortizations and interest amount to approximately 20 billion meticais [267 million euros],” representing “the largest amount to be disbursed throughout the year” of 2025.
“This scenario poses a risk as it reflects the growing reliance on domestic debt, whose service has become a substantial burden on public expenditure, associated with limited access to concessional external credit and the increasing need to finance the budget deficit, thus intensifying pressures on public finances,” the document noted.
