China announces pardoning of Mozambican debt

27 October 2017

On Thursday in Maputo China announced the partial pardoning of a debt owed by Mozambique, referring to four loans, totalling 239.26 million yuan (about US$36 million).

The announcement was made during the signing ceremony for agreements on economic and technical cooperation between the two countries by the Deputy Minister of Foreign Affairs and Cooperation, Nyeleti Mondlane, and the ambassador of the People’s Republic of China, to Mozambique, Su Jian.

After signing the document Mondlane said pardoning debt is of paramount importance to contribute to a better budget reprogramming and application of Mozambique’s resources.

“This gesture by the Government of the People’s Republic of China represents its consistent support to Mozambique in pursuit of its objectives, in particular with regard to economic and social development,” she said.

According to the deputy minister, the Mozambican government and China have developed a wide range of projects, including in the traditional areas of infrastructure, energy and mineral resources, agriculture, tourism, transport and communications.

Ambassador Su Jian explained that China’s objective is to reduce the Mozambican government’s debt burden.

“The Chinese government agrees to waive the Mozambican party’s obligations in terms of repayment of four interest-free loans, in the value of 239 million yuan, the equivalent of US$36 million,” the ambassador said. (macauhub)