Maputo-Katembe Bridge: Government starts payment of Exim Bank of China loan

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Maputo-Katembe Bridge: Government starts payment of Exim Bank of China loan

1:51 CAT | 07 Dec 2018

Photo: O País

The government has already started repaying the loan contracted with Exim Bank of China for the construction of the Maputo-Katembe bridge.

It is another burden for Adriano Maleiane, writes O País. In addition to managing the long-term restructuring of so-called “hidden debts” since 2016, the Minister of Economy and Finance has now more debt to manage in his hands.

This is the loan of more than 6.7 billion meticais contracted with China’s Exim Bank for the construction of the Maputo-Katembe bridge and the Katembe/Bela Vista and Ponta de Ouro roads.

It is known that the first part of the loan expires in 2019, but the Maputo Sul company, which manages this infrastructure, does not yet have the money to pay the Chinese, so the government will advance the value.

Adriano Maleiane declined to say precisely how much was to be paid.

Strangely, the state budget execution report for the period between January and September of this year, to which O País has had access, already mentions the start of payments.

“Regarding foreign debt, its growth is justified by the beginning of payment of the capital owed to multilateral creditors as well as the loan for the Maputo-Katembe Bridge and the Portugal credit line to bilateral creditors,” the document reads.

In general, debt actually paid reached 17.9 billion meticais, a growth of 130.5% over the same period of last year, due to the growth in the amortisation of domestic and external debt of 107.3% and 160.5%, respectively.

Source: O País