Mozambique: Monitoring Forum urges "deep reforms" in 2018 Draft State Budget
The rating agency Moody’s has told Lusa that it may improve Mozambique’s sovereign debt rating, currently in default, if debt restructuring involves losses of less than 35 percent.
“Our negative outlook may be stabilised before the debt rescheduling process is complete if it becomes more likely that losses to creditors will not exceed 35 percent,” Moody’s said in response to Lusa’s questions.
“We are cautious about the progress of the negotiations. On the one hand, the independent audit was a pre-condition for creditors for any restructuring, as well as for the International Monetary Fund and other donors.”
“On the other hand, the group of debt holders considered that the guarantees given to public companies should be withdrawn, even after the prime minister has reiterated that all loans and bonds should be included in the accounts,” adds the rating agency, underlining the uncertainty of the outcome of this dispute.
Asked whether investors still have an interest in Mozambique, a country that fell into default last year and does not expect to make any debt repayments within the next year, Moody’s said yes.
“Considerable natural gas resources are appealing to investors, with the materialisation of liquefied natural gas a potential game-changer for export performance, macroeconomics, and government revenue,” the analysts say.Source: Lusa
Negative inflation in July