Maputo, April 9, 2026 (Lusa) - Mozambique’s president, Daniel Chapo, said on Thursday that the decision to fully repay a €630 million debt to the International Monetary Fund (IMF) early was "brave" and demonstrated the country's "responsibility."
Speaking at the opening of the fifth ordinary session of the Central Committee of Frelimo (Mozambique Liberation Front), the ruling party he leads, Chapo confirmed that the government used international reserves for the full early payment.
"This brave decision is positive and strategic, a clear sign of macroeconomic responsibility and Mozambique’s international stability," he said. "A people's dignity has no price."
He added that the government would continue adopting measures to stimulate internal production and attract investment by creating a better business environment and a competitive economy.
He expressed interest in a new IMF support programme, which has been under negotiation since 2025.
"We reaffirm our openness to strengthening the strategic partnership with the IMF and other bilateral and multilateral partners on a mutually advantageous basis and with mutual respect," he said.
Lusa reported this week that Mozambique’s net international reserves reached a record $4.258 billion (€3.862 billion) in February before the government used part of them in March to settle the debt.
These reserves, which are foreign currency needed for imports, rose 1% in September to $3.937 billion (€3.409 billion). Central bank data shows they also rose in October, following a previous high of $4.035 billion (€3.494 billion) in August.
Reserves increased by nearly 1% between December and January, covering more than four months of imports, and rose again in February to a new peak.
Finance Minister Carla Loveira said on Tuesday that paying the debt would not compromise state institutions.
"We paid the debt service with the country's net international reserves," she said, adding that these funds are available at international financial institutions.
The minister said the €630 million payment did not require budget changes because the country held these financial positions.
She said there was no risk to state institutions because the government "did not use the state budget."
The finance ministry confirmed on Thursday that it made a "full and early payment" of €630 million to the IMF, settling loans from the Poverty Reduction and Growth Trust (PRGT), an IMF programme providing low-interest loans to low-income countries.
The ministry said in a statement that it repaid all obligations to the PRGT programme, totalling nearly $700 million (€630 million).
Business owners say settling the debt helps consolidate trust with external partners and deepen economic cooperation. However, they warned that macroeconomic stability must include "consistent internal measures that promote inclusive and sustainable growth."
PVJ/LYT // ADB.
Lusa
