Maputo, 28 Oct. (AIM) – Mozambique’s public debt to China will be restructured following the signing of an additional framework agreement between the governments of the two countries.
This agreement follows the meetings held in China last April between Mozambican President Daniel Chapo and his Chinese counterpart Xi Jinping, during which China granted partial remission of Mozambique’s debt, amounting to 204 million yuan (1.9 billion meticas) in interest-free loans due to expire in December 2024.
The agreement was signed by Finance Minister Carla Louveira and Chinese Ambassador Zheng Xuan in Mozambique. In line with the Medium-Term Public Debt Management Strategy (2025-2029), it is a major step towards matching debt repayments to the country’s financial capacity, thereby strengthening the sustainability of public finances.
According to Louveira, the main impact of this agreement is the alleviation of immediate pressures on the state budget, which allows for greater predictability in the management of public resources and creates conditions for better financing of economic and social priorities.
“This adjustment will help preserve the state’s capacity to invest in infrastructure, deliver essential services and meet the needs of the population by reconciling financial commitments with the imperatives of national development,” said the Minister, quoted in a statement.
In addition to adjusting payment schedules, the new agreement aims to create greater budgetary space for implementing national priorities, thus contributing to more efficient and sustainable management of public finances.
Xuan, for his part, praised the historical ties of friendship and cooperation between the two nations, stressing that the agreement reflects the views shared by the two countries.
The diplomat reaffirmed the Chinese Government’s willingness to continue supporting the country, particularly in the area of financial cooperation.
It also reaffirmed the commitment to deepen the bilateral partnership “for the economic and social development of the nation”.
The implementation of the agreement will be through the formalisation of the necessary instruments with the Chinese Import-Export Bank.