Mozambique: Credit to the economy hits new high in November 2024
Mozambique: Oil supply – Country receives debt forgiveness from Iraq
11:14 CAT | 18 Feb 2025
File photo: Ministry of Finance of Mozambique
Mozambique has been granted forgiveness of US$256 million of debt by Iraq, about 80% of the total it owes the country for loans contracted more than four decades ago.
The remaining 20% was reprogrammed for 15 years, after a grace period of four years, that
is, starting in 2029, according to the Ministry of Finance.
According to a press release, US$60.2 million of the debt was contracted between 1979 and
1980 in order to buy oil.
"However, taking into account the difficulties that the country faced with negative impact on the economy and which have conditioned the fulfilment of its obligations since then, the debt with this creditor ends up totalling around US$320.1 million," the ministry adds.
The negotiations that culminated in this debt forgiveness took place in Abu Dhabi, United
Arab Emirates, this month.
Meanwhile, according to the Quarterly Bulletin on Public Debt, in the third quarter of 2024
Mozambique's external debt stood at US$10.5 billion, US$3.9 billion owed to bilateral
creditors.
As in previous periods, the multilateral creditors with the greatest weight were the International Development Association, the International Monetary Fund (IMF) and the
African Development Fund (ADF).
Among bilateral creditors, China, Japan and Portugal remained prominent, while the remaining creditors registered shares of less than 2.5%.
The Bank of Mozambique (BdM) reported last month that domestic public debt recorded a
significant increase in 2024, increasing around US$325 million compared to the previous
year.
Source: Noticias
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