Mozambique’s Domestic Debt Hits Record as Moody’s and S&P Sound the Alarm

• Local debt reaches 28.7% of GDP as fiscal pressures intensify
• Distressed bond exchanges trigger selective default ratings

Mozambique’s domestic public debt surged to a record 447.2 billion meticais ($6.3 billion) in March 2025, reaching 28.7% of GDP, according to data from the Bank of Mozambique. This marks a 7.6% increase over just three months, as the government ramped up short-term borrowing and central bank advances to meet fiscal needs.