Data from the Mozambique Stock Exchange (BVM) reveals that the state has placed the equivalent of 52.6 million euros in the second issue of 2024 Treasury Bonds, with the interest rate rising to 19.5%.
This is the second issue in the space of a week and, according to the BVM, which conducted the operation on Wednesday (17), the bids submitted by the Specialized Treasury Bond Operators represented an overall demand of 4.1 billion meticais (59.8 million euros), with the demand and supply ratio reaching 102.8%.
The minimum interest rate was set at 19.5% and the maximum at 23%, for a maturity of five years. The issue of Treasury Bonds 2024-2nd Series, whose interest rate was higher than the previous ones, amounted to 3.6 billion meticais (52.6 million euros), for an initially requested amount of 4 billion meticais (58.2 million euros).
In the first Treasury Bond issue of the year, held on January 10, the state placed two billion meticais (29.5 million euros), with a demand of 123.61%, paying interest of 18%, which was also higher than in previous issues.
The government is forecasting a deficit equivalent to 2.3 billion euros in 2024, financed by new debt. According to the documents supporting the Economic and Social Plan and State Budget (PESOE) for 2024, the government expects to collect more than 383.5 billion meticais (5.6 billion euros) in revenue, corresponding to 25% of the estimated GDP.
On the state expenditure side, the budget forecast for next year is more than 542.6 billion meticais (7.9 billion euros), equivalent to 35.3% of GDP. The budget deficit forecast by the government for 2024 is more than 159.4 billion meticais (2.3 billion euros), an increase of 38.6% on the estimate for 2023.
To finance the deficit, the government plans to resort to external donations, external debt and internal credit. The country also approved the Public Debt Management Strategy 2023-2026, which guides the debt options for the coming years.
