China pardons part of Mozambique’s debt

14 June 2016

China will pardon 30 million yuan (about US$5 million) in bilateral debt owed by Mozambique, said Monday in Maputo the Chinese Deputy Trade Minister Zhang Xiangchen.

The announcement was made after Zhang signed a document to that effect which was signed by Deputy Minister of Economy and Finance, Maria Isaltina Lucas,on behalf of Mozambique.

The deputy minister of Foreign Affairs and Cooperation, Nyeleti Mondlane, present at the signing ceremony, said China’s decision will help reduce pressure on servicing public debt in Mozambique.

“The decision to partially pardon interest-free debt will minimise the pressure on servicing public debt in Mozambique and contribute to the materialisation of the objectives in the government’s five-year plan,” Mondlane said, quoted by Mozambican news agency AIM.

In addition to this agreement, the two countries also signed another, under which China will finance the construction of 200 water wells in Mozambique and a third agreement in the agricultural sector. (macauhub/CN/MZ)