Mozambique: Portugal signs debt cancellation agreement in June

19 May 2008

Maputo, Mozambique, 19 May – Portugal is due next June to sign a debt cancellation agreement with Mozambique, the Mozambican finance minister said Friday in Maputo, following a meeting with Portugal’s secretary of state for the Treasury and Finance.

Manuel Chang noted that in June the debt cancellation agreement for Mozambique public debt to Portugal would be signed, worth an estimated US$390 million as would a memorandum of understanding on technical cooperation between the Finance Ministries of both countries.

In a statement, the Portuguese Finance Ministry said that technical work for conclusion of the debt cancellation agreement had been carried out, but no date was given for it to be signed.

Portugal also announced that it would grant Mozambique a credit line of 100 million euros to fund public investment projects.

Under the terms of the agreement, this credit line, which can be accessed by private companies from both countries, Portugal would fund projects to repair roads, bridges, transport and construction of silos to store food stuffs and help to respond to the food crisis.

Portugal is part of the group of 19 countries that has provided support to the Mozambican state budget, over 50 percent fo which is funded by the international community.

The governments of Portugal and Mozambique are soon due to sign a protocol to provide a fund for investment promotion in infrastructure projects, which will complement the credit line. (macauhub)