The IMF could agree to a new aid programme to Mozambique early in 2017 if the government makes good on pledges to renegotiate loans with creditors and allows an independent debt audit, says an IMF official.
The IMF cancelled its funding 2016 after the emergence of more than $2bn in loans that were not approved by parliament or disclosed publicly.
The metical has lost 40% of its value against the dollar since January, inflating the cost of servicing more than $11bn of state debt.
The government admitted last week that the situation was unsustainable, with the country’s debt to GDP ratio likely to hit 130% in 2016.
IMF resident representative Ari Aisen told an investor conference he did not believe there was any more secret borrowing but said there were still complications that could delay a resumption in lending.
Key to its re-engagement is a full international audit of the various foreign loans, the IMF has said.
“The government’s willingness to bring transparency to its debt … is building the conditions for the IMF to resume programme discussions,” Aisen said. “We are hoping to resume talks soon. In terms of a new programme, possibly by the first quarter next year. Realistically, it may not be before June.”
Finance Minister Adriano Maleiane earlier told the same conference that Mozambique was committed to an international audit and a clean-up of state finances.
The government was pinning its longer-term hopes on huge revenue from development of its offshore gas fields, he added.
Reuters