IMF team to analyse Mozambique’s economic state

IMF team to analyse Mozambique’s economic state

A team from the International Monetary Fund (IMF) is expected in Mozambique this week with the $2 billion debt scandal high on the agenda.

IMF spokesman Gerry Rice said on Tuesday, 5 March 2019, that the IMF team is expected to arrive in Maputo on March 8 and will look at monetary policy measures recently adopted by Mozambique’s central bank.

“In addition to the mediated case of hidden debts, the macroeconomic situation in Mozambique and short, medium and long-term perspectives will be part of the IMF staff’s agenda,” Rice said in a statement.

At least 18 officials, including a former finance minister, have been charged for fraud involving $2 billion in loans to state-owned companies in Mozambique in a scandal that has ensnared two major international banks.

Apart from Credit Suisse, Russian lender VTB also arranged financing for Mozambique’s state-owned companies.

The Mozambican government admitted in 2016 to undisclosed lending, prompting the IMF and other donors to withdraw support, triggering a currency collapse and a default on the country’s debt.