China donates 13.9 million euros, cancels €7 million of Mozambican debt – Watch | Lusa

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China donates 13.9 million euros, cancels €7 million of Mozambican debt – Watch | Lusa

12:52 CAT | 14 Sep 2022

Photo: Miramar

China will donate the equivalent of €13.9 million and cancel seven million Euros of debt under agreements signed between the two countries in Maputo on Tuesday.

The donation results from the Agreement on Economic and Technical Cooperation signed by Mozambique’s Minister of Foreign Affairs and Cooperation, Verónica Macamo, and the Chinese ambassador in Maputo, Wang Hejun.

Macamo and Wang also signed the Partial Debt Relief Agreement and a certificate of delivery by Beijing of food products for humanitarian assistance in Mozambique.

“This gesture is yet another unequivocal symbol of our deep friendship, solidarity and cooperation, forged since the times of the national liberation struggle, during which the People’s Republic of China gave precious and varied support to the cause of Mozambican self-determination,” a statement from the Minister of Foreign Affairs and Cooperation reads.

READ: China to wave23 rate-free loans to 17 African countries, offer $10 bln in IMF funds

Referring specifically to the Partial Debt Forgiveness Agreement, Minister Macamo noted that the agreement would relieve pressure on the public accounts, making more resources available for social and economic development projects in the country.

“The People’s Republic of China is a friendly country that has stood by Mozambique’s side, making a contribution to efforts towards the sustainable development of our country,” she emphasized.

For his part, the Chinese ambassador noted that the two countries had intensified cooperation in various fields, consolidating historic ties.

“China will continue to expand the forms and fields of cooperation with Mozambique and to promote, according to Mozambique’s needs, more pragmatic and mutually beneficial projects,” he said.

At the end of the ceremony, there was no opportunity for questions from journalists, but, in March 2021, Minister of Economy and Finance of Mozambique Adriano Maleiane revealed in parliament that the country owed China €1.7 billion, equivalent to 16% of the total amount of public debt (estimated at €10.42 billion).

Almost all the money was owed to the Chinese Exim Bank for the construction of roads and bridges, including the Maputo ring road, the suspension bridge over Maputo Bay and roads in the south, Maleiane detailed at the time.

Watch the Miramar report.