In line with the 2010 Staff Guidance Note, a full joint LIC DSA is expected to be prepared once every three years for PRGT-eligible IDA-only countries. In between, short annual updates are expected to be produced unless macroeconomic conditions since the last full DSA have significantly changed. See: “Staff Guidance Note on the Application of the Joint Fund-Bank Debt Sustainability Framework for Low-Income Countries” (IMF/SM/10/16 and IDA/ SecM2010-0029)
The DSA presented in this document is based on the standard low-income countries (LIC) DSA framework. See “Debt Sustainability in Low-Income Countries: Further Considerations on an Operational Framework, Policy Implications” (IMF/SM/05/109 and IDA/SECM2004/0629, 9/10/04)
SeeMozambique – Sixth Review Under the Policy Support Instrument, Second Review Under the Arrangement Under the Exogenous Shocks Facility, and Request for a Three-Year Policy Support Instrument. IMF Country report No. 10/174.
The authorities have signed two nonconcessional loans to date: (i) in December 2010, a loan from China amounting to US$66 million to modernize Maputo airport; and (ii) in April 2011, a loan from Brazil for the construction of Nacala airport over US$80 million.
In last year’s DSA, the standard export shock was tailored to capture the historical volatility over the past two decades of prices of aluminum, which accounts for roughly half of Mozambique’s export proceeds. The current export shock reflects the same modification.
This should not affect the availability of credit to the private sector.