Moody's changes outlook on Mozambique's rating to stable, affirms the Caa3 ratings
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The Mozambique government will refuse to pay the ProIndicus loan organized by Credit Suisse, as it was “criminally-obtained”. But it is negotiating with the Russian state-owned VTB bank to restructure the MAM loan and repay on a similar basis to the restructured Ematum bonds.
The Public Integrity Centre (CIP) called for the government to stop negotiating with VTB and to refuse to pay both the Proindicus and MAM loans because their structure is identical. Both are syndicated loans kept secret from parliament, both had illegal government guarantees and the New York indictment shows that the bribes paid related to both loans. CIP adds that it is opposed to the government’s intention to promise future gas revenues to repay illegal debts
In a letter to the International Monetary Fund on 10 April, Finance Minister Adriano Maleiane and the Governor of the Bank of Mozambique, Rogerio Zandamela, said the government intends to allow ProIndicus to go bankrupt, and has brought legal proceedings in London against the arranging bank, Credit Suisse, to have the guarantee ruled null and void. But in the letter they say they are negotiating with VTB and are close to reaching a deal similar to the one relating to the Ematum bonds.
By Joseph Hanlon
Source: News reports & clippings