Nairobi - Mozambique and VTB Bank PJSC of Russia are close to agreeing on a restructuring of a loan to a state-owned company in the southeast African nation and the $178m interest payment that was due on May 23, a finance ministry spokesperson said.
"We are working very diligently with VTB to pay the outstanding interest and complete the agreed restructuring" of the loan to state-owned Mozambique Asset Management, or MAM, finance ministry spokesperson Rogerio Nkomo said on Sunday in response to e-mailed questions. "Both are expected to happen in the next few days."
The cash-strapped nation is facing demands from donors to disclose the state of finances, including listing all existing and planned debt. A letter from the so-called Group of 14 donors, released this month, requested that the government reveal the shareholding structure of MAM and a second state-owned company, Proindicus, which was lent $622m in 2013.
S&P Global Ratings, which estimates Mozambique’s net general debt at 90% of gross domestic product this year, and Fitch Ratings this month lowered the country’s credit assessment, saying the nation was at a greater risk of default.
The country, which is trying to develop gas fields that the government believes may make it the third-biggest exporter of liquefied natural gas, owes foreign investors $9.85bn, Finance Minister Adriano Maleiane told lawmakers this month. Mozambique held $1.8bn in foreign exchange in April.
The yields on Mozambique’s bonds due January 2023 closed at a record 17.14% on May 27, according to data compiled by Bloomberg. The metical has sunk 18% this year after depreciating 32% in 2015.