Mozambique: Agreement on country’s debt gives creditors 5% of gas revenues

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Mozambique: Agreement on country’s debt gives creditors 5% of gas revenues

9:00 CAT | 07 Nov 2018

File photo: Lusa

The government of Mozambique on Tuesday announced it had reached an agreement with the holders of the Mozambican public debt, resuming the payments in 2019 and it would hand over 5% of tax revenue from natural gas from 2033.

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The Ministry of Economy and Finance of the Republic of Mozambique said it had reached an agreement in principle on the main commercial terms for the proposed restructuring of debt securities, the government announced on the website of the ministry.

The agreement expects the exchange of current securities for a new debt issuance of about $900 million, and for a valuation tool, which in practice gives 5% of the tax revenues from natural gas in areas 1 and 4, up to a limit of $500 million.

You may access the PDF version of the Ministry of Economy and Finance communique, in English HERE
You may access the PDF version of the Ministry of Economy and Finance communique, in Portuguese HERE

Source: Lusa