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Vol 57 No 11

Published 27th May 2016


Mozambique

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.

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