On Tuesday, April 7, the Brazilian Senate approved the authorization of a debt restructuring agreement for Mozambique in the amount of $143 million. According to the SOU NEWS website, the decision, which is included in the Executive Branch’s message, is expected to be enacted.
The publication notes that authorization for the agreement had already been approved in December 2025 by the Economic Affairs Committee (CAE), adding that it was included on the plenary agenda at the request of the chairman of the Foreign Relations Committee (CRE), Senator Nelsinho Trad.
Mozambique’s debt to Brazil corresponds to overdue amounts from two transactions. The first relates to the remaining credits from the restructuring agreement signed in 2004, and the second concerns the financing of the construction of Nacala International Airport in Nampula Province, in the northern region of the country.
The Mozambican government ceased making payments to the Brazilian National Bank for Economic and Social Development (BNDES) in 2017, after which the Brazilian government assumed the obligations, becoming the creditor of the debt.
“Due to the economic crisis caused by the COVID-19 pandemic, several countries, under a multilateral agreement, suspended debt payments. In the case of Mozambique, the request for suspension was submitted in 2020,” he noted.
According to the agreement, the first installment, in the amount of $6.7 million, must be paid by Mozambique within 60 days of the agreement’s signing. The remaining amount will be paid in ten semi-annual installments, with an annual interest rate of 3.6%. In the event of a delay, a late payment interest rate of 1% above the contracted rate will apply.
Recently, the governments of Mozambique and Brazil discussed debt rescheduling and strengthened cooperation for the creation of the future Development Bank of Mozambique (BDM). The talks took place during a visit by Mozambican Finance Minister Carla Loveira to the South American country in March.
At the same time, the two nations signed a memorandum of understanding in the areas of public finance management and development financing. “The agreement confirms the strength of the relations between our countries and opens a new chapter of technical cooperation in public finance management and development,” the minister stated.
