France pardons Mozambique’s debts and signs new agreements

12 March 2010

Maputo, Mozambique, 12 March – France plans to pardon Mozambique’s debt and provide 76 million euros for development projects, under the terms of five agreements signed Thursday in Maputo by representatives of both governments.

France pledges to pardon the 18.9 million-euro debt owed by Mozambique and to channel 10 million euros to the State Budget between this year and 2014 to carry out activities to combat poverty.

The French government will provide 4 million euros for tourism projects in the Quirimbas National Park, specifically in the involvement of the community and conservation of biodiversity, protection of fishing areas and ecological integrity of the project’s resources.

The same agreement outlines that France will also provide 900,000 euros to the health sector, to higher education and medical specialities and provide a loan of 600,000 euros to boost the country’s human and technical capacities.

A loan agreement was also signed for 20 million eruos for power projects in the cities of Maputo (capital), Matola (south) and Pemba (Cabo Delgado province, north).

The French Secretary of State for Foreign Trade, Anne Marie Idrac, said the aid was due to “Mozambique’s good macroeconomic performance,” which led the French authorities in 2009 to reinstate a “an active policy of subsidised loans an which respected the country’s financial capacity.”

Idrac said that “very soon” conventions worth 35 million euros would be signed with two institutions in Mozambique, including Banco de Comércio e Investimento (BCI), which is majority-owned by Portuguese state financial group, Caixa Geral de Depósitos (CGD). (macauhub)