Mozambique: ANE needs 800 million meticais to guarantee accessibility of roads in Nampula
Saint-Louis Studio / Steven Le Vourc'h (File photo) / Adriano Maleiane
Mozambique’s economic situation is limiting its capacity to repay its debts, and according to newspaper ‘O País’, its chief hope is the successful conclusion of the debt renegotiation process.
The case started last October when the executive submitted a proposal to renegotiate the public debt to creditors in London on the grounds of the deterioration of the country’s macroeconomic and fiscal situation, which was affecting public finances.
At the meeting, Mozambique said that it might fail to pay interest on Mozambican Tuna Company, Ematum’s debt. Three months later the government failed to make a US$60 million interest payment without any progress towards the proposed debt renegotiation.
“This debt, whose situation I went to present in October, represents 17 percent of all the debt we have, but the particularity is that debt service accounted for 50 percent of all debt. Hence it was important to find with creditors the best way to continue to have their support, but also to have that debt framed in the programming we have for the 2017 budget,” Mozambican Minister of Economy and Finance Maleiane said.
According to the minister, this situation may also jeopardize payments on Proindicus and MAM debts scheduled for March.
“We can not anticipate, but what we have to try to do by March is conclude negotiations with the advisors so that by then we have a concrete proposal for bringing the debt of Mozambique down to sustainable levels,” Maleiane explained.
Ematum contracted US$850 million of debt, Proindicus US$787 million and MAM US$500 million. All loans are state-guaranteed.
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