Finance Minister Carla Loureiro met with a delegation from the International Monetary Fund (IMF), which began a working trip to Mozambique on Wednesday, to hold technical negotiations regarding a possible financial support program for the country, as it became known.
The Ministry stated in its announcement that it hopes this mission will lay the groundwork for the completion (Staff-level Agreement) and official approval by its IMF Executive Board by the end of 2026, according to the previously agreed schedule.
During the meeting, the minister acknowledged that despite the trend toward economic recovery, treasury liquidity problems still persist. This creates difficulties for full budget execution and timely fulfillment of debt obligations.
Nevertheless, the Government remains committed to creating conditions for implementing fiscal consolidation package measures, consistent with what was presented during the 2026 mission.
This mission will last until September 18 in Maputo and will involve technical discussions aimed at negotiating a potential Program under the Extended Credit Facility (ECF) Mechanism, which is an IMF concessional financing mechanism for low-income countries.
The IMF delegation is headed by Pablo Lopez Murphy and plans to meet with various ministries, the Bank of Mozambique, private sector representatives, and financial institutions.
In a statement published today, the Ministry of Finance noted that the head of the mission said he 'hopes the discussions will be positive,' and reported that the IMF 'intends to deepen recent fiscal developments, debt management strategy, in the macroeconomic context and improve economic policy, which will support a potential future program under the ECF.'
The statement also emphasized that the executive body is fully confident in Mozambique's medium-term potential, especially thanks to reforms and benefits that LNG projects will bring, reinforced by the resumption of the TotalEnergies Moçambique GNL project in January 2026 and the country's recent exit from the FATF grey list.
This mission took place approximately three months after the IMF confirmed initial discussions with Mozambican authorities regarding a formal request for financial support.
At the end of the previous visit in June, Lopez Murphy, who led that mission, stated that the team had discussed 'their request for a Fund-supported program' with the Government and that they would return to Maputo 'in the coming months' for a more detailed study of the request and the government's economic policy plans.
He explained that the talks concerned measures aimed at restoring macroeconomic stability and public debt sustainability, including strengthening the fiscal position, protecting the most vulnerable groups, enhancing monetary and exchange rate policy, maintaining financial stability, and improving governance.
The IMF then concluded that Mozambique faces a complex economic situation characterized by moderate growth, accelerating inflation, fiscal and debt vulnerabilities, and foreign currency access constraints. The Fund warned about risks associated with rising international fuel and fertilizer prices, as well as the consequences of recent climate shocks for the national economy.
Mozambique prepaid a debt of $698.6 million to the IMF in March, corresponding to financing received under the Poverty Reduction and Growth Trust (PRGT). The Government presented this operation as a sign of prudent public financial management and restored market confidence.
