Mozambican government to propose debt pardon of 95% from Poland

21 April 2010

Maputo, Mozambique, 21 April – Mozambique’s government plans to propose to Poland the pardon of 95 percent of its debt, as part of the Paris Club criteria, the Mozambican Finance Minister, Manuel Chang said Tuesday in Maputo.

Mozambique owes US$292 million to Romania, Hungary, Bulgaria and Poland, former Eastern block countries with which Mozambique had an alliance at that time.

The request to restructure Mozambique’s debt to Poland will be one of the main aims of the Mozambican delegation at the Spring meeting of the World Bank and the International Monetary Fund (IMF), which has been underway since Tuesday and is due to end Sunday in Washington.

Chang gave assurances that Mozambique would present a proposal for the pardon of 95 percent of the debt and restructuring of the remaining 5 percent noting that the proposal followed the “conditions of the Paris Club,” despite the fact that Poland is not a member.

In the last four years Mozambique has managed to reduce its foreign debt by around 60 percent and it currently stands at around US$3.2 billion.

For five days, finance ministers from many countries are to discuss the representation of African countries in the boards of directors of the World Bank and the IMF, as part of the so-called Spring meetings. (macauhub)