Money-strapped Mozambique is open to asking China to restructure the US$1.4 billion it owes its greatest bilateral creditor, President Daniel Chapo stated.
The gas-rich southeast African nation’s economic system contracted for 2 straight quarters after disputed October elections triggered violent protests that left a whole bunch died and noticed factories and outlets burned and looted.
The unrest hit public revenues, heaping strain on the state to remain present on debt funds and amplifying questions on sustainability.
Some bilateral collectors have already expressed curiosity in supporting Mozambique via forgiving money owed, Chapo stated.
“Rescheduling and even forgiveness of the debt we’ve with our largest bilateral creditor will not be an outlandish thought,” he stated, when requested if the nation was contemplating requesting China to restructure its loans.
“In fact, it will at all times be achieved inside the framework of partnership, inside the present settlement, as we’re a critical nation that strives to honor its commitments.”
