Mozambique: New debt regulations 'on right track' - African Development Bank
The Mozambican government is taking part in annual International Monetary Fund and World Bank spring meetings starting today. On the sidelines of the meeting, the government will “analyse negotiations with creditors of the state’s hidden debt”, Lusa reports.
A delegation led by the Minister of Economy and Finance, Adriano Maleiane, is participating in the annual event, the agenda of which includes meetings with government advisers on financial and legal issues, the companies Lazard Frêres and White & Case, respectively.
The objective is to “obtain information on the progress of the negotiations” being conducted by the two companies on behalf of the Mozambican state with Mozam 2013 (previously Ematum), Proindicus and MAM creditors.
Mozambique has proposed the write-off of US$124 million of the US$249 million dollars interest owed to, and a rescheduling of all pending reimbursements.
“We have to have a solution because, if we do not, the subject will be constantly in the press, negatively contributing to Mozambique’s rating,” Maleiane told Lusa two days after the talks in London.
The delegation travelling to the United States this week includes the governor of the Bank of Mozambique, Rogério Zandameça, along with other central bank and government officials, the executive said in a statement.
“This year, the main theme of the Spring meetings is ‘Meeting Global Aspirations and Challenges’,” the statement reads.
A meeting is also scheduled with the director of the IMF’s African Department, Abebe Aemro Selassie, to “address the progress of ongoing structural reforms” in Mozambique and another meeting with the IMF’s Fiscal Affairs Department (FAD) to “evaluate the technical assistance programme”.
The delegation will also meet World Bank Vice President for Africa, Makhtar Sop Diop, the institution being “an important partner in financing development for Mozambique”, the statement concludes.
Two billion dollars in hidden debts were contracted by three state-owned companies in 2013 and 2014, based on state guarantees without the knowledge of parliament or the international partners.
The fate of the money is yet to be investigated and public companies claim state secrecy not to disclose information, which means that some of the country’s international support remains blocked.
RT WorldBankAfrica : RT WorldBank: We’re getting excited!
The 2018 World Bank Group-IMF Spring Meetings are here! See full schedule of events and sign up for reminders to watch the livestreams, here–> https://t.co/LQ8WZobk3K #WBGMeetings pic.twitter.com/9Jms7BsPzV
— Nuvo Consulting (@NuvoConsulting) April 15, 2018