Maputo, May 5, 2026 (Lusa) – Mozambique's finance minister said on Tuesday that the early full repayment of the €630 million debt to the International Monetary Fund (IMF) demonstrates "prudent management capacity" of commitments, proving to markets that the country intends to "restore trust".
"By settling this obligation before the deadline, Mozambique demonstrates its capacity for prudent management of its external commitments, strengthening its reputation as a credible partner in the international financial system," Carla Loveira told parliament while responding to questions from MPs.
"This decision sends a clear message to the markets. Mozambique honours its commitments and is dedicated to restoring trust within a global context that increasingly demands transparency and debt sustainability," she said, stressing that the action "has concrete effects on the country's risk perception."
"The reduction of exposure to the IMF is interpreted as a sign of a strengthened external position and greater autonomy in economic policy, which tends to improve the sovereign risk profile. This boost in credibility can translate, in the medium term, into better external financing conditions, greater investor appetite, and a gradual reopening of access to international capital markets," she said.
Mozambique's Finance Ministry confirmed in April that it had made a "full and early amortisation" of over $698 million (€630 million) to the IMF, settling loans contracted under the Poverty Reduction and Growth Trust (PRGT).
In parliament on Tuesday, she said that the payment occurred on 23 March, settling advances under the Rapid Credit Facility agreed in 2019, another Rapid Credit Facility agreed in 2020, and the Extended Credit Facility agreed in 2022. To achieve this, the government used Liquid International Reserves (RIL), which are foreign currency assets used to pay for imports.
"This decision is part of a broader strategy of macroeconomic normalisation and the reinforcement of institutional confidence. At a time when markets value consistent signs of commitment to structural reforms, the early repayment of IMF debt helps reposition Mozambique on a trajectory of stabilisation and recovery," she said. Loveira added that the move was "not merely a financial act, but a strategic instrument of economic policy, with a direct impact on external credibility, attracting investment, and consolidating macroeconomic stability".
She explained to parliament that the IMF’s PRGT "is a window that provides concessional financing to countries like Mozambique facing fiscal and balance-of-payments pressures". Under the agreements between the Bank of Mozambique and the Ministry of Finance for these facilities, the central bank "provided a guarantee" on these obligations. This led to a "duplication in the recording of this debt in the General State Account and the central bank's balance sheet," she said.
"Following the restricted financing conditions faced by Mozambique since late 2024, these agreements could have crystallised exposures to the Central Bank's balance sheet," she said, adding that Mozambique's state approved a Public Debt Management and Sustainability Strategy covering 2025 to 2029. This strategy required reducing the Bank of Mozambique's balance sheet exposure to ease pressure on external debt, which accounted for 40.81% of GDP by December 2025.
Based on these premises, the state "decided to repay the country's obligations to the IMF, preserving the central bank's balance sheet and its ability to consolidate macroeconomic stability," she said.
The operation took place one year after the IMF and Mozambique's government suspended the programme in effect since 2022. According to the minister, negotiations for a new programme remain ongoing.
PVJ/RYOL // ADB.
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