Mozambique | - Part 4

IMF Wants Full Mozambique Debt Audit as Bondholders Slam Default

MAPUTO (Capital Markets in Africa) – The International Monetary Fund said Mozambique must publish the full audit of hidden debt before it will consider resuming lending, as bondholders criticized the government’s latest default on its Eurobonds. The IMF welcomed the release last month of a summary of the Kroll LCC audit, saying it constituted an “important step toward greater transparency,” spokesman William Murray said at a briefing in Washington Thursday. The fund will consider re-engaging with Mozambique once the…

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

Posted on by The Editorial Team

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…

Credit Suisse Disputes Fees Shown in Kroll Mozambique Audit

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MAPUTO (Capital Markets in Africa) – Credit Suisse Group AG, which helped arrange the majority of the $2 billion in Mozambique state-backed loans that plunged the country’s economy into crisis, disputed that it received more than $160 million in fees for arranging the financing. The bank was responding to Kroll LLC’s audit report into the loans that said it and Russia’s VTB Bank PJSC were paid almost $200 million in arrangement and contractor fees. The investigation showed that Mozambican…

Traders Snap Up Assets of Nation Where Default Is New Normal

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LAGOS (Capital Markets in Africa) – For a country that has missed several debt payments this year, Mozambique’s assets are performing remarkably well. The southern African nation’s currency has posted the world’s biggest gain in 2017, while the price of its overseas bonds, which the government defaulted on in January, has soared about 30 percent, making them among the best-performing sovereign notes in emerging markets. The rally — after last year’s rout — suggests investors may be…

Mozambique Misses Latest Loan Payment as Restructuring Stalls

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MAPUTO (Capital Markets in Africa) – A state-run company in Mozambique skipped $134 million in payments on a government-guaranteed loan, the third time this year the southern African nation failed to meet its obligations as a standoff with creditors blocks debt restructuring talks. Mozambique Asset Management, one of three state-owned companies that took out undisclosed loans worth about $2 billion, failed to make the payment due May 23, Rogerio Nkomo, a spokesman for the Finance Ministry,…

Africa’s Central Bank Monetary Policy Rates and Foreign Exchange Reserves

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LAGOS (Capital Markets in Africa) – Angola’s central bank kept its benchmark lending rate unchanged at 16 percent following a policy meeting on Friday 28th April 2017, the bank said in a statement posted on its website. The National Bank of Angola (BNA) has kept its key rate steady since June last year when it raised it to the current level to curb accelerating inflation. In 2016 the BNA rate was raised 500 basis points….

Barclays Africa Said to Be Front-Runner to Buy Mozambican Bank

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JOHANNESBURG (Capital Markets in Africa) – Barclays Africa Group Ltd., the South African bank with operations across 12 countries on the continent, is the lead bidder for Mozambique’s Moza Banco SA, according to people familiar with the matter. The central bank has received three proposals, which will be reviewed by an independent panel before the winner is announced in July, one of the people said, asking not to be named because the process is private. Barclays Africa’s…

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