africa Banking Economy Finance Mozambique

Mozambique: IMF welcomes debt relief deal

The International Monetary Fund (IMF) says it is pleased by the debt relief deal being proposed by Mozambique.

The IMF said it approved of Mozambique’s agreement in principle to restructure its debt with private creditors, but added the heavily indebted African country needed a wider-ranging plan to ensure long-term debt sustainability.

IMF made this statement after a board meeting on Monday, also emphasizing in the importance of strengthening oversight of the entire public debt portfolio, including for state-owned enterprises, to put public debt-to-GDP ratios on a clear declining path”.

On Friday Mozambique’s finance ministry said it had reached a restructuring deal in principle with holders of its defaulted 2023 bonds and that the new arrangement would not offer creditors instruments linked to future gas revenues.

Source: Deythere

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