Jump to navigation

Vol 57 No 11

Published 27th May 2016


Sovereign default looms

The debt time-bomb has all but exploded. A desperate government flails around looking for repayment solutions while public finances flounder

After Finance Minister Adriano Maleiane confessed in Parliament last week that the government could not cover a major loan repayment due on 23 May, a sovereign default looks likely. A mysterious local company, Mozambique Asset Management (MAM), which obtained a US$535 million state-guaranteed loan in 2014, cannot, he said, pay the Russian bank VTB the $178 mn. in principal and interest as scheduled.

End of preview - This article contains approximately 1810 words.

End of preview

Subscribers: Log in now to read the complete article.

Account Holders: Log in now and use your Account Credit to buy this article. No Credit? Top up your Account now.

If you are logged in, but still cannot access the full text of this article, email customer services or telephone us on +44(0)1638 743633.