Mozambique: Renamo repudiates sovereign debt restructuring

Login

Register

http://www.clubofmozambique.com/

Mozambique: Renamo repudiates sovereign debt restructuring

4:01 CAT | 05 Nov 2019

Photo: O País

The Mozambican National Resistance (Renamo), the main opposition party in Mozambique, on Monday, repudiated the government’s announcement of the restructuring of the sovereign debt of $726.5 million that originated from the public company Ematum, and it demanded the repeal of the measure.

Renamo and Mozambicans in general repudiate and condemn the arrogant attitude of dictatorship and total contempt for the Mozambican people, the Constitution and the laws, expressed by the Frelimo government with the simple aim of defending the corrupt and the homeland, said Renamo spokesperson, José Manteigas.

The decision of the executive of the Mozambique Liberation Front (Frelimo) must be revoked and the debt must be paid by the culprits of the hidden debts, Manteigas said.

The attitude of the Frelimo government is more worrying and irritating for Mozambicans, because the decision to pay off this unconstitutional and illegal debt comes at a time when information is circulating that $10 million (€8.95 million] of the debts have benefited the Frelimo party, Manteigas said, referring to bank documents presented during the trial of the case in New York.

On the other hand, he pointed out that the Constitutional Council has already ruled the debt of Ematum as unconstitutional, one of the companies that benefited from the so-called hidden debts.

When it is expected that those involved in this monstrous financial scandal will be held accountable, to the shame of the Mozambican people and in a new stab wound to the Constitution, the Frelimo government decided last week to pay off Ematum’s unconstitutional and illegal debt, Manteigas said.

The Mozambican government last Wednesday informed creditors of the sovereign debt bonds that it already has all the conditions and authorisations necessary to proceed with the new issue of bonds to start paying for the restructuring of the $726.5 million (€650.7 million) of the 2016 issue.

The Mozambican government informs debt holders that it has received all the authorisations and approvals required and required by Mozambican law in connection with the issue of new bonds and delivery of the consideration in cash, including the main authorisations, an official document from the finance ministry read.

The case of hidden debts is related to the guarantees provided by the former Mozambican executive, during Armando Guebuza’s mandates, in favour of loans of around $2.2 billion (€2 billion) for public companies Ematum, MAM and Proindicus.

The Mozambican justice system and the US justice system, which is also investigating the case, consider that part of this money was used to pay bribes to Mozambican and foreign citizens.

Source: Lusa