The downgrade of the country’s financial rating was due to pressure from the government’s wage reform, which has since been adjusted, Mozambique’s Economy and Finance Minister Max Tonela said on June 27, Lusa news agency reported. .
“The recent ranking of the country was based on data from the beginning of the year, when the impact of the wage reform was very high”Max Tonne said.
The official is confident that “as of July, invoices will return to normal, in accordance with the established forecasts.”
In addition to the corrections in the salary reform, he continued, the Executive is also committed to the diversification of sources of financing costs.
At the same time, the Minister of Economy and Finance stressed that the country’s economy is following the growth trajectory that was recorded last year, while the gross domestic product (GDP) is expected to reach 5% this year after 4, 1% in 2022.
Note that the financial rating agency S&P previously lowered the rating of the local currency debt to default for 24 hours to reflect the delays in payments that occurred between February and May. The agency then lowered the rating to what it was before the temporary “default.”
Source: Rossa Primavera
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