The Mozambican government has set a ceiling of approximately US$8 billion on Treasury Bill (BT) issuance for 2026, a 1.6% increase on the limit authorised in the previous year. The bulk of the amount is earmarked for the refinancing of existing debt, at a time when rising domestic indebtedness continues to weigh on public finances.

According to Lusa, the decision is contained in Ministerial Decree No. 82/2026 from the Ministry of Finance, which establishes the maximum volume of Treasury Bills that may be issued during the current fiscal year. In 2025, the ceiling had been set at approximately US$7.9 billion.

Of the amount authorised for this year, approximately US$939 million is destined to cover state treasury requirements, while the remaining US$7.1 billion will be used to replace existing securities or other liabilities.

Treasury Bills are short-term public debt instruments used by the state to meet temporary financing needs and manage its financial commitments.

The decree further establishes that the Bank of Mozambique, acting as the state’s cashier, must credit to the state account the proceeds from the issuance of the securities, with the government responsible for ensuring that the corresponding obligations are met.

Domestic Debt Has More Than Tripled Since 2021

The setting of the new ceiling comes against a backdrop of rising domestic indebtedness, which reached approximately US$8.6 billion as of 23 September 2026, equivalent to roughly 33% of gross domestic product (GDP), according to Bank of Mozambique data.

That figure represents more than triple the US$2.4 billion recorded at the end of 2021.

Between January and September, central bank financing to the state increased from approximately US$2.5 billion to US$3.5 billion, contributing to the deterioration of domestic debt.

By contrast, the value of Treasury Bills in circulation remained relatively stable, edging from approximately US$2.45 billion in January to US$2.35 billion in September.

According to the Ministry of Finance, Mozambique’s total public and guaranteed debt stock reached US$17.9 billion at the end of June 2026, equivalent to 75.9% of GDP.

The public debt bulletin for the second quarter points to an increase of US$153.4 million compared with the first three months of the year, driven primarily by a 3% rise in domestic debt.

The Ministry attributes this evolution to new financing operations with the Bank of Mozambique and to the rolling of interest on Treasury Bonds.

External debt, meanwhile, declined by 0.8%, settling at US$8.85 billion.

Debt Service Reaches US$2.1 Billion

The pressure from rising indebtedness is also reflected in the state’s financial obligations. Through to June, Mozambique had disbursed approximately US$2.1 billion in public debt service, of which around US$1.9 billion represented principal repayments and US$197 million covered interest payments.

Domestic debt service increased by 20% compared with the previous quarter, driven by Treasury Bill rollovers, debt-swap operations, and interest payments on Treasury Bonds.

Against this backdrop, the new Treasury Bill issuance ceiling is intended to ensure the management of the state’s financing requirements, including the refinancing of existing obligations.

The approximately US$8 billion figure represents, however, the maximum annual volume of authorised issuances and does not necessarily correspond to an equivalent increase in outstanding public debt.