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China forgives Mozambique debt

China has pardoned part of Mozambique’s debt by cancelling any interest on the debt that had not fallen due by 2015, the local media reported on Monday.The Chinese government has also announced that the interest rates on future loans will be revised downwards to below the current 1.5 or two percent.

According to state-controlled Radio Mozambique, President Filipe Nyusi revealed these changes at the weekend to the Mozambican reporters who had accompanied him to the China-Africa summit in South Africa.

He said the relief would allow greater Chinese support and investment in the country and more flexibility in servicing the debt.

Nyusi revealed that he had obtained these results in his audience with Chinese President Xi Jinping on Thursday.

He added that foreign financing of the country should be aimed at levering the economy. It should contribute towards empowering the national business class, and providing the skills people needed so that they can be employed.

Source: StarAfrica

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