Mozambique says its foreign debt “is sustainable”

27 July 2007

Maputo, Mozambique, 27 July – Mozambique’s foreign debts of US$ 2 billion are at “a sustainable level”, Finance Minister Manuel Chang has said.

Speaking Wednesday about a meeting next week in Maputo between African finance ministers and central bank chiefs with officials from the International Monetary Fund and World Bank, Chang said he was satisfied with Maputo’s present debt to its international creditors.

“We have reached a sustainable debt stock and our goal is to remain prudent so as to not return to the previous situation of being highly indebted,” added Chang.

To keep its debts in check, Maputo will continue to exercise care in taking on new financial commitments, said Chang.

Mozambique was among the Heavily Indebted Poor Countries (HIPC) until 1990 with debts in excess of US$ 6 billion. After implementing structural and market reforms demanded by the IMF and World Bank, Mozambique reached an accord with its main creditor countries, known as the Paris Club, to cut its debts to the current level.

Mozambique’s finance minister said that the country’s internal debts were presently around US$ 211 million. (macauhub)