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Mozambique will not make $59.76 million interest payment due Jan. 18
By Caroline Salls
Pittsburgh, Jan. 17 – Mozambique’s Ministry of Economy and Finance said the republic will not make the $59.76 million payment due Jan. 18 on its $726.52 million of 10½% notes due 2023.
According to the release, the deteriorating macroeconomic and fiscal situation of the republic has severely affected its public finances. As a result, the ministry said Mozambique’s debt payment capacity is extremely limited in 2017 and does not allow the republic to make the scheduled interest payment on the notes.
The minister said the Mozambique government is working with the International Monetary Fund to establish the conditions necessary for an early resumption of its financial assistance to Mozambique.
“Financial support from the IMF, underpinning an ambitious program of reforms to be agreed, will play a critical role in improving the republic’s public finances and stabilizing its macroeconomic situation,” the release said.
“However, in order for the IMF to resume its financial support for the republic, it will be necessary for the republic to take steps with its external creditors to put the country’s debt on a sustainable path.”
The ministry said it is committed to engaging in a collaborative process with the republic’s external commercial creditors, with the objective of finding a solution within the parameters of the IMF’s debt sustainability framework for low-income countries.
The ministry said it regards the republic’s external commercial creditors as important long-term partners whose support of the necessary debt resolution process will be critical for the future success of the country.
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