Mozambique - 04

Mozambique: Government Willingly Defaults on EMATUM Bond

On 16 January the Ministry of Economy and Finance issued a communiqué stating that the government would not make its upcoming $59.76mn interest payment due on 18 January. The payment relates to the (former) EMATUM loan that was turned into a bullet bond in April 2016 and is due to be repaid in 2023. The loan is technically not EMATUM’s debt, given that President Filipe Nyusi accepted the debt as public in early 2016. According to the ministry, the reason for the non-payment is Mozambique’s “deteriorating macroeconomic and fiscal situation” over the last year, which means that its “debt-repayment capacity … [is] extremely limited in 2017.”

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