Mozambique to propose debt restructuring plan to creditors

PUBLISHED: Fri, 23 Feb 2018 11:27:03 GMT

Mozambique will present to its creditors the key elements of a debt restructuring proposal and give an update on its fiscal and macroeconomic situation at a meeting in London on March 20, the Ministry of Economy and Finance said on Thursday.

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“The government remains committed to finding a consensual and collaborative resolution to the current debt situation through dialogue with the holders of the Republic’s direct and guaranteed external commercial obligations,” the ministry said in an emailed statement.

Debt-ridden Mozambique has been in turmoil since the 2016 discovery of previously hidden loans granted to three state-owned companies, which led the International Monetary Fund and Western donors to halt budget support, triggering a currency collapse and debt defaults as well as hitting economic growth.

Reporting by Karin Strohecker; Editing by Kevin Liffey

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