THE GOVERNMENT PREFERS TO MORTGAGE GAS REVENUES RATHER THAN HOLD RESPONSIBLE THE AUTHORS OF THE HIDDEN DEBTS

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On March 20, 2018, the Government of Mozambique sent a mission to London, United Kingdom, to discuss with creditors a possible forgiveness of 50% of interest payments (and likely related penalties) and capital in arrears (so far amounting to US$ 636 million), a reduction in interest rates and an extended maturity for the repayment of the hidden debts.

A document prepared by the Ministry of Economy and Finance, with the assistance of the financial and legal advisors Lazard Frères SAS and White & Case LLP, respectively, addressed to the foreign debt creditors1, aimed at presenting the macrofiscal situation of the country, an analysis of the sustainability of the public debt as well as potential proposals of restructuring scenarios to convince lenders to reschedule foreign debt service in the coming years.

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