Finance minister states that companies have assets to pay undisclosed debts

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Finance minister states that companies have assets to pay undisclosed debts

10:00 CAT | 29 Jul 2016

Folha de Maputo (File photo) / Minister of Economy and Finance Adriano Maleiane

Minister of Economy and Finance Adriano Maleiane on Wednesday expressed confidence that it would not be necessary to invoke the government guarantees on the undeclared loans contracted by state enterprises and said that they have assets to pay their debts.

“Those companies have assets. If they are unable to pay for reasons that they might explain, we have many alternatives, the first of which is to seize their assets and sell them,” Adriano Maleiane told parliament on Wednesday as it considered the amending state budget, passed with votes in favour by most of the Mozambique Liberation Front (Frelimo) deputies against the wishes of the opposition benches.

Maleiane said, however, that he was convinced that “companies will find the best solutions with their lenders in order to avoid this situation”.

Minister Maleiane reiterated that the amending budget does not provide for payment of debts of US$1.4 billion guaranteed by the government between 2013 and 2014 in favour of Mozambique Asset Management (MAM) and Proindicus, which were not disclosed to parliament and international donors.

Source: Folha de Maputo