Mozambique Asset Management fails to pay debt installment

26 May 2016

State-owned company Mozambique Asset Management (MAM) missed the deadline of 23 May to pay an installment of US$178 million but is in talks with creditors to restructure the debt, the spokesman for the Ministry of Finance said Wednesday in Maputo.

Rogério Nkomo said the State guarantee granted on the loan of US$535 million contracted by MAM from Russian bank VTB “will not be an issue until the negotiations are concluded.”

The spokesman, quoted by Reuters, added that the Ministry of Finance has no control over the way the public company is dealing with its creditors.

On Monday, Fitch Ratings downgraded Mozambique’s credit rating from “CCC” to “CC” based on the fact that a debt default was about to occur related to loans of over US$1.4 billion guaranteed by the state.

Following the public disclosure of a number of loans with state guarantee contracted by public companies, Prime Minister Carlos Agostinho do Rosario said that on 31 December the country’s public debt totalled US$11.640 billion. (macauhub/MZ)