Mozambique’s foreign debt totals around US$4.6 billion

15 December 2006

Maputo, Mozambique, 15 Dec – Mozambique’s foreign debt totaled US$4.6 billion on December 31, 2005, the country’s finance minister, Manuel Chang said Thursday in Maputo.

Speaking to parliament, Chang said that of this total US$2.5 billion related to multilateral debt and the remaining US$2.1 billion to bilateral debt.

The decision taken by the G8 group of the world’s most industrialized nations to cancel most multilateral debt made the debts owed by Mozambique to the International Monetary Fund (IMF), the World Bank and the African Development Bank (ADB) disappear.

“As a result, Mozambique’s foreign debt fell by almost US$2 million,” the minister said, without giving a more precise figure.

A large part of the remaining debt is bilateral and was granted by countries such as Algeria, Libya and Iraq in fuel deals in the 1970s.

In domestic terms, debt at September 30 totaled US$7.2 billion new metical (around US$300 million), netted through treasury bond issues. (macauhub)