Moz gets debt reprieve

Thu, 03 Jul 2008

Portugal on Tuesday cancelled more than $390-million in debt owed by Mozambique and agreed to a separate loan to help key sectors of the African country's economy, officials said.

Mozambican Finance Minister Manuel Chang said the cancellation of the $393.4-million (€249-million) Mozambique owed former colonial power Portugal, dating back to 1975, would help fight poverty in the country.

Portugal's Finance Minister, Fernando Teixiera dos Santos, also signed a line of credit of €100-million to help develop economic sectors such as agriculture and mining.

Mozambique's economy is still struggling to recover after a long period of civil war between 1975 and 1992.