Skip to content
AidData logo

Overview

China Eximbank restructures Mozambique's outstanding debt obligations worth $2.02 billion

Commitment Year•2018Country of Activity•MozambiqueDirect Recipient Country of Incorporation•MozambiqueSector•Action Relating To DebtFlow Type•Debt rescheduling

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 1, 2018

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Mozambique

Loan desecription

China Eximbank restructures Mozambique's outstanding debt obligations worth $2.02 billion

Interest type•Fixed Interest Rate

Narrative

Full Description

Project narrative

According to the IMF, the Chinese Government agreed at least in principle to reschedule Mozambique's outstanding debts in 2017. Then, in March 2018, Mozambique’s Prime Minister Carlos Agostinho do Rosario announced that his government had signed a debt rescheduling agreement with the China Eximbank. One month later, in April 2018, Stelia Neta, a National Director at the Ministry of Finance of Mozambique told Bloomberg News that the Government of Mozambique’s outstanding debt obligations to the China Eximbank amounted to $2.02 billion and the Chinese Government had agreed to extend the grace periods (and first principal repayments) on these outstanding debt obligations without changing their final maturity dates or interest rates.

Staff comments

1. Most of the loans that were rescheduled were reportedly from China Eximbank, and Mozambique's outstanding debt in 2018 matched the amount. This issue warrants further investigation.