Africa Credit Rating Economy Finance Government Mozambique

Mozambique has 84% of its public debt in foreign currency

Mozambique is the country in sub-Saharan Africa with the highest percentage of public debt denominated in foreign currency – about 84% – and should not return to the markets to finance itself before reaching an agreement with the International Monetary Fund (IMF), according to a report from the Standard & Poor’s rating agency.

The report on expected debt issues for sub-Saharan African countries this year, which S&P sent to investors, said that Mozambique will not return to the international financial markets “in 2018, due to the recent default” on the payment of coupons related to the issuance of debt in foreign currency in 2016 as well as two State-backed loans taken on by public companies.

The report on the public debt of the 17 countries that the agency rates in Sub-Saharan Africa show that these countries will increase their indebtedness by another US$57 billion this year, according to Portuguese news agency Lusa.

For Africa as a whole, S&P expects the commercial debt to reach US$392 billion by the end of this year and total debt to reach US$514 billion.

Source: Macauhub


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