Will taxes from Eni/Exxon deal affect Mozambique’s debt restructure? – A question for IMF’s Rice

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Will taxes from Eni/Exxon deal affect Mozambique’s debt restructure? – A question for IMF’s Rice

9:55 CAT | 10 Mar 2017

IMF / Gerry Rice

Partial transcript of a press briefing with Gerry Rice, Director of the IMF Communications Department and IMF spokesman

Washington, D.C.

March 9, 2017

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Questioner: (…) Exxon has purchased a substantial stake in a gas project in Mozambique and, you know, obviously this will have tax implications for the government, probably positive tax implications. I’m wondering if the IMF has a view on that, whether it changes the government’s fiscal picture in any way; if it changes the Fund’s view of that restructuring there.

Mr. Rice: I just don’t have anything on that issue

Questioner: Do you have anything — Do you have anything — What’s your most recent, the most recent view you have on Mozambique?

Mr. Rice: You know, I think we’ve talked about it here before; Mozambique faces a very challenging situation. Mozambique defaulted, as you know, in January on a bond payment, a coupon payment. What I can tell you, is an IMF Mission was there. We are very much engaged with Mozambique to help them face the situation. We have been, as you know, emphasizing the importance of the independent audit to take account of the spending that was discovered a number of months ago. So we continue to follow that independent audit, and in that context pursue discussions on the possibility of a new IMF-supported program. That’s probably as much as I have for you on Mozambique.

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Source: imf.org