Government of Mozambique discloses conditions of State-backed loans

23 November 2016

The government of Mozambique announced the terms of loans taken on by companies Mozambique Asset Management (MAM) and Proindicus in response to requests from creditors requesting additional information, in a document published on the Finance Ministry website.

The document is available online at http://www.mpd.gov.mz/images/Summary_of_Key_Terms_of_Certain_Commercial_External_Indebtedness.pdf

The document notes that in March 2017 a provision of US$119.4 million is due to be paid for the Proindicus loan whose maturity runs until March 2021 and in May 2016 a payment of US$133.8 million for MAM’s loan was due.

Regarding the loan obtained by Proindicus, organised by the London branch of Credit Suisse, the document reveals that there was a creditor who has called for the return of their investment, worth US$2.7 million, “based on the lowering of the credit rating of Mozambique which has occurred this year.”

The loan obtained by MAM, with maturity on 23 May, 2019, stipulates repayments of US$133.7 million per year in May and has a late payment of US$175.5 million that was due in May this year.

However, the International Monetary Fund (IMF) announced that Mozambique has not complied with the obligations of financial reporting under the PSI support programs (Policy Support Instrument) for 2010-2013 and 2013-2016 and cancelled its positive assessment of the implementation of these programmes.

In a statement issued in Washington, the IMF Board of Directors said it welcomed the corrective measures taken and other actions the Mozambique authorities have committed to in order to improve monitoring and information provided to the IMF.

“In view of these remedial measures and other actions to correct the problem, the Board of Directors decided that it will not require any other corrective action, but urged the authorities to implement the measures announced comprehensively and in a timely manner,” concluded the President in office, Zhang Tao. (macauhub)

MACAUHUB FRENCH