Maputo, 28 Oct (AIM) – Mozambique’s public debt with China will be restructured following the signing of a Supplementary Framework Agreement between the governments’ of both countries.
The agreement follows meetings held in China last April between Mozambican President Daniel Chapo and his Chinese counterpart Xi Jinping, in which China granted a partial forgiveness of Mozambique’s debt, amounting to 204 million yuan (1.9 billion meticais) in interest-free loans that were set to mature in December 2024.
The agreement was signed by the finance minister Carla Louveira and the Chinese ambassador to Mozambique Zheng Xuan. The agreement aligns with the Medium-Term Public Debt Management Strategy (2025–2029) and represents a significant step toward aligning debt repayments with the country’s financial capacity, thereby strengthening the sustainability of public finances.
According to Louveira, the primary impact of the agreement is the alleviation of immediate pressures on the State Budget, which allows for greater predictability in the management of public resources and creates conditions to better fund economic and social priorities.
“This adjustment will help preserve the State’s capacity to invest in infrastructure, ensure the provision of essential services, and respond to the needs of the population, balancing the fulfillment of financial commitments with the requirements of national development”, said the minister, cited in a statement.
In addition to adjusting payment schedules, the newly signed agreement aims to create greater fiscal space for pursuing national priorities, thereby contributing to a more efficient and sustainable management of public finances.
For her part, Xuan praised the historical ties of friendship and cooperation between the two nations, emphasizing that the agreement reflects the understandings reached by both countries.
The diplomat reiterated the Chinese government’s readiness to continue supporting the country, particularly in the realm of financial cooperation.
She also reaffirmed a commitment to deepening the bilateral partnership “for the sake of the nation’s economic and social development.”
The implementation of the agreement will proceed with the formalization of the necessary instruments with the Export-Import Bank of China (Exim Bank).
Am/
