IMF Expects Mozambique to Default on Foreign Debt Until 2023
- Country will pay arrears when output from gas projects starts
- Government should liquidate hidden-debt companies, IMF says
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Mozambique won’t make payments for at least five more years on about $2 billion of loans that led to a default last year, according to the International Monetary Fund.
The government has amassed $710 million of arrears on the debt, most of which it previously hid from the Washington-based lender, according to an Article IV report and an associated Debt Sustainability Analysis to be submitted to the fund’s board March 2. The documents were shown to Bloomberg by two people who declined to be identified because they’ve not been published yet.