Mozambique Govt Settles IMF Debt in Landmark Move
The government has fully paid its outstanding debt of U.S. $630,1 million to the International Monetary Fund (IMF). The government has reduced its balance from that amount at the start of the month to zero by the end. Mozambique is the only country in this situation among 85 countries listed.
Since Mozambique is no longer in arrears to the IMF, it may be easier for the government to obtain further loans from the Fund. The country had previously received about $468 million under a 2022 Extended Credit Facility programme, which was suspended in April 2025 after partial disbursements.
IMF officials and President Daniel Chapo had indicated plans for a new support programme, and clearing the debt was seen as a key step toward restoring financial cooperation, though the government had not yet issued an official comment.
InFocus
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President Daniel Chapo's hopes of securing a new International Monetary Fund (IMF) loan to trigger investment in the country's ailing economy have been dashed. The IMF board has demanded major fiscal reforms and a devaluation of the local currency as prerequisites for any loan agreement.
Analysts suggest that meeting these demands without significant concessions from the ruling Frelimo party will prove
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(File photo).
