Mozambique’s international bonds tumbled earlier this week after a news report that the new government in Maputo is weighing a debt restructuring following months of post-election turmoil. Although Mozambique’s public debt-to-GDP, fell to 93.7% in 2023 from 100.3% the previous year, it is classified by the International Monetary Fund (IMF) as being at high risk of overall debt distress.
Its external debt-to-GDP ratio fell to 66.2% from 72.1% but frequent delays in the development of liquefied natural gas fields mean that it has to wait longer before its external debt service can benefit from those exports. Mozambique’s economy has been hit hard by climate change in recent years. Growth slowed to 3.7% in the third quarter from 4.5% in the second quarter, said the IMF, which expects a potentially worse fourth-quarter performance due to the protests and the cyclone.
(Source Reuters)
Most Viewed Posts
- Tropical Storm “Dikeledi” is in the Mozambique Channel
- Cyclone Dikeledi leaves five dead and more than 36,000 people affected in Mozambique
- Mozambique activates orange warning due to Cyclone Dikeledi
- Cyclone Chido destroyed more than 330 schools in Mozambique
- Mother and children die after eating poisoned spaghetti in Mozambique