China writes off $36m Mozambican debt

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China writes off $36m Mozambican debt

8:01 CAT | 27 Oct 2017

Magazine Independente

China has agreed to write off Mozambique’s $36 million debt in a deal formalized in Maputo on Thursday.
Under the accord the Chinese government agreed to waive Mozambique’s obligations in terms of repayment of four interest-free loans worth 239 million yuan, equivalent to $36 million.

The agreement was signed by Deputy Minister of Foreign Affairs and Cooperation, Nyeleti Mondlane, and the Chinese ambassador to Mozambique, Su Jian.

Mondlane said that debt forgiveness is of paramount importance for contributing to a better reprogramming of the budget and application of the resources that the country has.

Mozambique and China have been developing a wide range of projects, including in the traditional areas of infrastructure, energy and mineral resources, agriculture, tourism, transport and communications.

For his part, Su Jian explained that China’s goal is to reduce the debt pressure on the Mozambican government.

This attitude, according to ambassador, could allow for the continuation of serious cooperation in a sustainable way between the two countries.

Meanwhile, China has pledged to give Mozambique €12.7 million for the construction of a new airport in Xai-Xai, capital of Gaza province as part of the debt pardoning.

The airport construction will cost $60 million to be funded by China’s Exim Bank Mozambique.