Mozambique Government Says Won’t Make Interest Payment Due July 18

MAPUTO (Capital Markets in Africa) – Mozambique won’t meet its obligations to holders of $726.5m notes due 2023, Ministry of Economy and Finance says in an emailed statement. Challenging macroeconomic, fiscal situation have affected public finances; “debt payment capacity of the republic remains extremely limited in 2017, and does not allow the republic room to make the scheduled interest payment on the notes”.

While government is committed to resolving financial crisis through dialogue, it will be “critical that any solution is based upon a realistic appraisal of the republic’s capacity to pay, while at the same time is respectful of the interests of the republic’s international investors”.