Suspending sovereign debt payments would harm Mozambique and Angola – Thomas Laryea

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Suspending sovereign debt payments would harm Mozambique and Angola – Thomas Laryea

3:47 CAT | 13 May 2020

in file CoM

Public debt restructuring lawyer Thomas Laryea said in an interview with Lusa today that Angola and Mozambique should not suspend sovereign debt repayments, because that would increase financing costs.

“Both Angola and Mozambique received funding from the International Monetary Fund (IMF) and other multilateral institutions to offset the economic effects of the fight against Covid-19, which is the first appropriate line of defence,” Laryea said.

For the creditors’ representative in the restructuring of US$727.5 million of Mozambique’s sovereign debt, “any consideration of the suspension of bond payments by Angola or Mozambique will be costly for these countries, and will affect the cost of the financing critical for them to recover from the crisis and to return to growth”.

Source: Lusa