As per reports, the Bank of Mozambique stated in its 2025 Financial Stability Report that the country’s sovereign risk remained at a severe level in 2025 due to continued pressure from rising domestic public debt. The domestic public debt increased by 16.5 percent, from MZN 406.996 billion in 2024 to MZN 474.013 billion in 2025.
• Reports indicate that the central bank identified public debt as one of the principal vulnerabilities affecting the financial system, with increased reliance on Treasury Bills and Treasury Bonds to meet the government’s financing requirements.
• Reportedly, the Bank of Mozambique stated that delays in government payments have affected confidence in sovereign securities and contributed to reduced liquidity in the interbank market.
• Reports suggest that the central bank’s stress test for 2027 identified banks’ high exposure to sovereign assets as a key risk to the banking sector’s capital resilience.