Mozambique: Mozambique Signs Agreement With China to Restructure Its Debt
[AIM] Maputo -- Mozambique's public debt with China will be restructured following the signing of a Supplementary Framework Agreement between the governments' of both countries.
Mozambique and China have signed an agreement aimed at restructuring the African nation's public debt with Beijing. The Supplementary Framework Agreement was brokered during meetings between Mozambican President Daniel Chapo and Chinese President Xi Jinping in April. The deal includes a partial forgiveness of around 204 million yuan (1.9 billion meticais) in interest-free loans, originally due in December 2024.
The agreement aligns with Mozambique's Medium-Term Public Debt Management Strategy (2025-2029) and aims to reduce immediate pressures on the State Budget. Finance Minister Carla Louveira highlighted that the agreement will improve fiscal space for economic and social priorities, such as infrastructure development and essential services.
Chinese Ambassador to Mozambique Zheng Xuan praised the historical ties between the two countries and reiterated the Chinese government's commitment to continued support, particularly in financial cooperation. The formal implementation of the agreement will involve the Export-Import Bank of China.
Written by urgent.news from AllAfrica's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
