Mozambique plans to restructure part of its public debt

2 March 2017

The government of Mozambique will request negotiations with creditors to restructure part of its debt, the country’s Prime Minister said on Wednesday in Maputo.

Carlos Agostinho do Rosario, quoted by Mozambican news agency AIM, said that Mozambique intends to honour its commitments “to regain investors’ trust.”

Three public companies in Mozambique – Ematum (US$850 million), Mozambique Asset Management (US$535 million) and Proindicus (US$622 million) – borrowed more than US$2 billion, and the latter two were negotiated in secret.

The loan on to Ematum was restructured in April 2016, with the extension of the term of maturity and an increase in the interest rate of each coupon but Mozambique has since failed to pay an installment in the amount of US$59.7 million.

The Prime Minister also stressed that negotiations were underway with the International Monetary Fund (IMF) mainly focused on the question of reforms to be implemented with a view to economic recovery and the restoration of trust among cooperation partners.

In a meeting with the press, Carlos Agostinho do Rosario said there were signs of recovery in the economy, with key indicators recording an improvement, citing, for example, the stability of the Mozambican currency, the metical, which between October and now went from 80 to 70 meticais per dollar.

The Prime Minister stressed that foreign reserves had registered “a considerable increase” and are currently enough to cover five months of imports. (macauhub)