Government of Mozambique negotiates debt at meetings in London

22 February 2018

The Mozambican government is expected to meet with representatives of commercial creditors in March to continue negotiations for restructuring part of the country’s public debt, the Economy and Finance Minister announced on Wednesday in Maputo.

“We are working to get our public debt back to sustainable levels, we are interacting with relevant institutions and we are in a position to go to London for talks with creditors,” said Minister Adriano Maleiane.

The minister added that 87% of Mozambique’s indebtedness is of multilateral origin (from financial institutions) or bilateral origin (agreed between countries) and “there are no problems at all,” with this portion of the country’s debt.

“What we are discussing represents 13% of the total, but accounts for 50% of debt service. That is why it is a problem and that is what we are negotiating,” he said, quoted by Portuguese news agency Lusa.

Mozambique has US$2 billion in loans taken out by three state-owned enterprises with State backing – Empresa Moçambicana de Atum, ProIndicus and Mozambique Asset Management – with the latter two loans taken on in violation of Mozambican legislation.

Following the disclosure of the loans, the International Monetary Fund (IMF) suspended its support programme for Mozambique, followed by the remaining members of the Group of 14 countries and multilateral institutions that provided direct support to the Mozambican State Budget. (macauhub)