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Mozambique Commits to Repay Debt Used in Public Interest

MAPUTO, Mozambique, Capital Markets in Africa: Mozambique vowed to honour what it said were illegal debt contracts to state-owned companies even as it aims to only repay loans that have benefited the public interest. Yields on the nation’s Eurobonds fell for the first time in four days. Prime Minister Carlos do Rosario, acknowledging that it seemed “attractive” to default on some payments, told lawmakers on Wednesday that the “good image of the country among international creditors”…

Mozambique Plans to Reorganize or Sell 20 State Companies

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MAPUTO, Mozambique, Capital Markets in Africa: Mozambique’s debt crisis has destabilized government operations and the country will have to reorganize 20 state-owned companies, privatize them or shut them down, President Filipe Nyusi said. The nation admitted in April to having $1.4 billion in loans it hadn’t disclosed to investors and last month failed to make a $178 million interest payment on one of the debts. “You are aware about the increase in our debt,” Nyusi told businessmen over…

Investment | Renaissance Capital Moves Into Mozambique in Deal With Dominio

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Maputo, Mozambique, Capital Markets in Africa: Renaissance Capital Limited is pushing into Mozambique to take advantage of what it says is increasing interest from foreign investors in the southern African country. The Moscow-based investment bank, which trades across 43 emerging and frontier markets, signed a partnership deal last week with Lisbon-based Dominio Capital Group, which has an office in Maputo, Mozambique’s capital. The agreement will make it easier for RenCap to work on deals for clients wanting…

Financing | Mozambique’s Nyusi to Visit China Next Week, Presidency Says

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Maputo, Mozambique, Capital Markets in Africa: Mozambican President Filipe Nyusi will visit China later this month, his office said, weeks after western donors withdrew budgetary support following the southern African nation’s admission to holding more than $1 billion of undeclared loans. Nyusi’s week-long visit, which received parliament’s go-ahead last week, begins May 16, an official at the presidency said Friday. “The authorization should not be a blank check to contract more debt,” Lutero Simango, the leader of…

Greece’s Secret Debt Evoked in Mozambique $1 Billion Hole

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LAGOS, Nigeria, Capital Market in Africa — For some Africa watchers, Mozambique’s confession of a $1 billion debt hole seems strangely reminiscent of another country — one that’s also in contentious talks with the International Monetary Fund. The predicament reminds analysts including Rand Merchant Bank’s Nema Ramkhelawan-Bhana of Greece’s concealment of its true fiscal dilemma in the late 1990s and early 2000s. The IMF said last week that Mozambique failed to disclose government-guaranteed loans provided by Credit Suisse Group…

IMF Suspends Standby Credit Facility for Mozambique

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MAPUTO, Mozambique, Capital Markets in Africa — The International Monetary Fund (IMF) has confirmed the suspension of the second tranche of a loan to Mozambique of US$283 million from the Fund’s Standby Credit Facility (SCF). The suspension had been widely expected after the IMF announced last Friday that it was cancelling the mission which had been due to visit Mozambique this week because of the country’s “undisclosed loans”, which the IMF put at more than…

Mozambique Central Bank Hikes Policy Rate to Curb Inflation in April

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MAPUTO, Mozambique, Capital Markets in Africa —The Bank of Mozambique has decided to increase key policy interest rates to the highest level in four years , in its efforts to curb inflationary pressure. The Bank’s Monetary Policy Committee, which met in Maputo on 20 April, announced that the Standing Lending Facility (the interest rate paid by the commercial banks to the central bank for money borrowed on the Interbank Money Market) will rise immediately by…

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