Mozambique: Government, creditors to talk again at IMF Spring Meetings

Login

Register

http://www.clubofmozambique.com/

Mozambique: Government, creditors to talk again at IMF Spring Meetings

1:46 CAT | 23 Mar 2018

File photo / The Spring Meetings of the International Monetary Fund and World Bank Group will take place in Washington, D.C, April 20-22, 2018.

Talks between Mozambique’s government debt creditors and the government are to continue in four weeks’ time in Washington at the IMF Spring Meetings, the representative of the creditors, Thomas Laryea, has told Lusa.

At the end of a meeting in London on Wednesday led by Mozambique’s finance minister, Adriano Maleiane, Thomas Laryea told Lusa that “despite keeping the main outlines of the restructuring, its was no good to start any talks that would lead to a feasible solution. The declaration issued today reflects the feeling about a reconsideration of Mozambique’s approach”.

Laryea was speaking to Lusa about the significant difference in tone used on Tuesday, which was highly critical of the restructuring proposal put forward by Mozambique, and the encouraging words used in the communiqué issued at the end of today’s meeting.

“The group expects that with the appropriate adjustments, this initial step can lead to negotiations in good faith to find an equitable, fair solution”, said the communiqué disclosed by this group that says it represents about 80% of the holders of the bonds that Mozambique issued in April 2016, worth $727.5 million.

Mozambique’s government on Tuesday proposed to creditors and investors in public debt a haircut of 50% on missed interest payments and whatever penalties that might exist – that is, $318 million of the $636 million in debt that should have been paid.

It also wants lower interest rates and longer maturities for the debt, which was originally to be paid off in 2020 but whose maturity was extended to 2023 two years ago.

Source: Lusa