Mozambique reaches agreement on loan from Russian bank VTB

8 March 2018

The Mozambican government is expected to have reached an agreement with Russian bank VTB on how to resolve the problem of the debt taken on from the financial institution, the Mozambican foreign minister said on Wednesday in Maputo.

The VTB bank lent US$535 million to Mozambican state-owned Mozambique Asset Management (MAM), which, along with publicly owned company ProIndicus, in 2013 and 2014 took on state-backed loans that were hidden from both parliament and cooperation partners.

Minister Jose Pacheco said of the debt to VTB, “the chairman of the Russian bank, was here and he worked with the relevant sectors in this area and there are understandings about how to clean up the debt.”

Pacheco was speaking alongside Sergei Lavrov, the Russian Foreign Minister, after he was granted an audience with the Mozambican head of state, Filipe Nyusi, at the Presidential Palace in Maputo.

The Russian bank lent US$535 million to MAM, while Credit Suisse provided US$622 million to ProIndicus and US$850 million to tuna company Ematum.

The Mozambican Ministry of Finance announced in February that representatives of the Mozambican government would meet in London on 20 March with creditors of commercial loans contracted by state-owned public companies. (macauhub)