Mozambique: Country must make debt more sustainable – AfDB

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Mozambique: Country must make debt more sustainable – AfDB

9:56 CAT | 27 Nov 2018

File photo: Lusa

The director of the African Development Bank (AfDB) in Mozambique told Lusa on Tuesday that the country must continue to make its debt more sustainable in order to gain more financing and develop the economy.

“Mozambique should continue the initial steps taken by the government to put debt on a more sustainable trajectory, which is essential in order for it to be able to enjoy greater resources for development,” Pietro Toigo said.

Asked about the African Development Bank’s position regarding a preliminary agreement reached this month with foreign creditors, he replied: “We don’t comment on agreements of countries with other lenders because we also give loans and we don’t want to have a potential conflict of interest.”

However, he said that “surely the World Bank and the International Monetary Fund will update the debt analysis and in this context we can see the impact of this agreement on the structure of debt.”

Mozambique recently announced a preliminary agreement with 60% of the holders of its Eurobonds, according to which the country is to resume payments in March 2019, and to hand over 5% in tax revenues from natural gas production, which is due to kick off in 2022.

ALSO READ: Mozambique: Public debt set to hit 102.5% of GDP this year – Fitch

Source: Lusa