June 4, 2019
LONDON (Reuters) – The International Monetary Fund said on Tuesday it welcomed Mozambique’s agreement in principle to restructure its debt with private creditors, but added the heavily indebted country needed a wider-ranging plan to ensure long-term debt sustainability.
In a statement following its board meeting on Monday, the fund stressed the importance of “strengthening oversight of the entire public debt portfolio, including for state-owned enterprises, to put public debt-to-GDP ratios on a clear declining path”.
On Friday the country’s finance ministry said it had reached a restructuring deal in principle with holders of its defaulted 2023 bonds and that the new arrangement would not offer creditors instruments linked to future gas revenues.
(Reporting by Karin Strohecker; Editing by Jan Harvey)