Mozambique will postpone negotiations with its creditors until it finalizes a new program with the International Monetary Fund, President Daniel Chapo announced. This sequencing places the country's financial recovery on hold, as the government seeks IMF endorsement before engaging lenders. The move signals a cautious approach to managing its significant external debt burden.

President Chapo's statement follows years of fiscal strain for the southern African nation, which defaulted on $2 billion in hidden loans in 2016. A fresh IMF agreement is essential to unlock other financing and provide a framework for the debt restructuring. Creditors are watching closely for a concrete timeline.

Securing IMF backing first is a strategic step to ensure any future debt talks are credible and sustainable. The government aims to restore investor confidence and access new funding. Markets will now focus on the progress of IMF discussions and when formal creditor negotiations might finally begin.