Mozambique’s external debt falls to 2.6 billion Euros over the last four years

31 July 2009

Maputo, Mozambique, 31 July – Mozambique’s external debt fell to around 2.6 billion Euros over the last four years, while internal debt increased to around 200 million Euros over the same period, said Mozambique’s Finance minister Thursday.

The minister Manuel Chang said that in 2004 the amount of external debt reached US$4.7 billion (around 3.3 billion Euros), and fell to US$3.6 billion (around 2.6 billion Euros) in 2008.

Internal public debt was estimated at 5.7 billion meticais (153 million Euros) in 2004 and rose to 7.4 billion meticais (around 200 million Euros) in 2008, added the minister.

The highest Mozambique’s external debt has ever been is just over US$6 billion (around 4.3 billion Euros) in 1998.

From that date the debt was gradually reduced when Mozambique joined the Heavily Indebted Poor Countries (HIPC) Initiative, set up by the big international banks to write off the debts of the world’s poorest countries. (macauhub)