The International Monetary Fund, IMF says it has discussed Mozambique’s request for a fund-supported arrangement, as it concluded a week-long mission to the African country.
Pablo Lopez Murphy, who led the IMF team that visited Maputo from June 8 to 12, said in a statement that Mozambique is facing a challenging economic situation.
“Economic activity is gradually recovering from a contraction in 2025, but growth remains subdued,” he said.
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The IMF staff team said that its objective was to review recent economic developments, discuss the authorities’ plans to restore fiscal and debt sustainability, and explore how the Fund can best support Mozambique going forward.
The IMF reclassified the Southern African country’s debt as unsustainable in February, citing a deterioration in public finances.
The country’s debt problems date back to a 2016 hidden-debt scandal, which wrecked investor confidence and curbed access to funding.
Reuters
