China writes off EUR 4 million Mozambique debt

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China writes off EUR 4 million Mozambique debt

4:16 CAT | 14 Jun 2016

Lusa (File photo)

The Government of China announced forgiveness of a 30 million Yuan (EUR4 million) interest-free debt as a sign of the consolidation of relations between the two countries in Maputo yesterday.

Speaking after the signing of the protocol pardoning the debt, China’s Vice Minister of Trade, Zhang Xiangchen, said that the decision is part of the Global Strategic Partnership agreement signed in May in Beijing during President Nyusi’s visit to China.

“We have confidence in the economic development of Mozambique and China is willing to help Mozambique in the economic and trade areas,” Zhang said, and the memorandum of understanding signed also reflects the intention of both countries to strengthen bilateral cooperation.

In reply, Mozambique’s deputy minister of Foreign Affairs and Cooperation of Mozambique, Nyeleti Mondlane, said the partial debt relief reflects the commitment of the Chinese government to social and economic development in Africa.

“The legal instruments just signed represent a valuable contribution by China to the efforts of the government in the pursuit of economic and social development goals in the country,” Mondlane said.

Referring to an agreement mandating the construction of more than 200 water wells in drought-stricken areas, Deputy Minister Mondlane said that the understanding would also help the country mitigate the effects of natural disasters.

At the same ceremony, the Mozambican and Chinese governments and the Bill and Melinda Gates Foundation signed an agreement covering research into the agricultural technology required to promote food security in the country.

Source: Lusa