Mozambique: Fitch keeps country at ‘Restricted Default’ level

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Mozambique: Fitch keeps country at ‘Restricted Default’ level

11:15 CAT | 28 Mar 2018

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Rating agency Fitch has kept Mozambique’s rating at Restricted Default because the government is still unable to meets the payments of its public debt and the borrowings of three state-owned companies it said on Tuesday.

This rating reflects the country’s inability to solve the default the agency said in a communiqué. Fitch has kept Mozambique at this rating level since November 2016, when the country began to miss the payments on $727.5 million of sovereign debt.

Since that time, Mozambique has missed the payment of three coupons on this Eurobond and the payments of the borrowings taken out by three state-owned companies without the knowledge of the international partners and national institutions, Fitch added.

Writing about a possible financial aid deal with the International Monetary Fund (IMF), Fitch said the chances were “limited” since the fund continues to demand that the government discloses critical information identified in an audit report issued by Kroll in June 2017 about the hidden debt.

Source: Lusa