Mozambique: International reserves grow in December after two months of falls
Mozambique reaches bilateral debt relief agreement with Iraq – finance ministry
12:19 CAT | 12 Feb 2025
Iraq has forgiven $256 million in oil debt that Mozambique has owed it for decades. Mozambique had owed Iraq a total of $320.2 million and will pay the remaining $64 million balance over 15 years starting in 2029, the ministry said in a statement on Tuesday. [Photo: Ministry of Finance of Mozambique]
Mozambique has secured forgiveness of 80% of its total debt with the Republic of Iraq, and payment of the remaining 20% has been rescheduled for a period of 15 years preceded by a grace period of four years, which means that it has been rescheduled for the time period from 2029 to 2043.
The debt, for the supply of oil, was contracted within the framework of the long and historic mutual cooperation in the years 1979 and 1980 for a total amount of 60,257,715 US dollars.
Meanwhile, following the difficulties Mozambique has faced, with negative impact on the economy and hindering the fulfilment of its obligations, the debt to this creditor has, since then, risen to 320,163,570 US dollars.
With the relief now granted ,Mozambique will be forgiven 256,130,856.04 US dollars.
The negotiations with Iraq were held in Abu Dhabi, United Arab Emirates, from 2 to 6 February 2025.
Senior officials from the Ministry of Finance and Mozambique’s Economic and Commercial Advisor to Portugal and Spain were part of the Mozambican delegation to the negotiations. Officials from Iraq’s ministries of Finance and Foreign Affairs and its central bank formed the Iraqi delegation.
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