Intelligent news from Mozambique

Local banks fill donor hole as Mozambique budget deficit grows

  •         Donors withdraw 9 billion meticais from Mozambique’s budget
  •         Increased deficit funded by domestic borrowing
  •         Sharp rise in unclassified “other” current expenditure
  •         Budget makes no provision for guarantees being called on MAM and ProIndicus debts

The revised budget presented by Mozambique finance minister Adriano Maleiane to the country’s parliament last week cuts spending in 2016 by little more than 1% compared to the original budget – with the shortfall made up by a sharp increase in domestic borrowing, as well as exchange rate effects.

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