In October 2023, the Mozambican government signed an out-of-court agreement with ProIndicus creditors (Credit Suisse and local banks, excluding VTB) for the payment of 522 million dollars (32.9 billion MT). To fulfil this agreement, the government paid 142 million dollars, of which 46 in cash (obtained from the exceptional budget revenue that resulted from the cancellation of the natural gas exploration contract in the Rovuma basin) and 6.2 billion MT (96 million dollars) from the issuance of National Treasury Bonds with a maturity of six years (IMF, 2024).
The value of the interest to pay on the 6.2 billion MT debt amounts to 10.1 billion MT, taking into account the average interest rate applied to Treasury Bonds during 2023 (17.78%). In this context, the interest that will be paid by the government is equivalent to almost 167% of the capital. In other words, for each unit of capital borrowed, the government undertakes to return almost 167% in interest only over the term of the loan.
