The International Monetary Fund expects that Mozambique will not make payments for at least five more years on about $2 billion of loans which led to a default last year, Bloomberg reported on Wednesday.An Article IV report and an associated Debt Sustainability Analysis obtained show that the Mozambique government has amassed $710 million of arrears on the debt most of which it previously hid from the Washington-based lender, Bloomberg said. bloom.bg/2HPppHQ
Thank you for reading this post, don't forget to subscribe!“Arrears are expected to accumulate until 2023, when Mozambique will start producing gas from large offshore deposits,” the IMF said.
Debt-ridden Mozambique has been in turmoil since the 2016 discovery of previously hidden loans granted to three state-owned companies, which led the International Monetary Fund and Western donors to halt budget support, triggering a currency collapse and debt defaults as well as hitting economic growth.
Reporting by Rishika Chatterjee in Bengaluru