The Economic Affairs Committee of the Brazilian Senate approved the authorization to restructure Mozambique’s debt with Brazil, amounting to 9.15 billion meticais (143 million dollars).
The initiative, proposed by the Brazilian Presidency in 2024 and presented urgently by Senator Fernando Farias, will now proceed to conversion into a resolution project, according to the Brazilian Senate, cited by the Lusa news agency.
The approval comes after the official visit of the President of Brazil to Mozambique on November 23 and 24, during which nine legal instruments were signed across various areas, including economy and technical cooperation. According to the project, the first installment, amounting to 428.2 million meticais (6.7 million dollars), must be paid by Mozambique within 60 days of signing the agreement. The remaining amount will be settled in ten semiannual installments with an annual interest rate of 3.6%. In case of delay, a late interest rate of 1% above the contracted rate will apply.
The debt corresponds to overdue amounts from two operations. The first relates to the remaining credits from the restructuring contract signed in 2004. The second concerns financing for the construction of Nacala International Airport, in Nampula. The Mozambican government stopped making payments to Brazil’s National Bank for Economic and Social Development (BNDES) in 2017, and the Brazilian government assumed the obligations, becoming the creditor of the debt.
During the visit to Maputo, the Brazilian President stated that the country wants to resume cooperation with Mozambique in areas such as agriculture, energy, biofuels, health, defense, and technology. He also emphasized that Brazil intends to strengthen credit instruments to support exports and investments in the national market.
At the closing of the economic forum between the two countries, the Brazilian head of state declared that his government is willing to strengthen economic dialogue with Mozambique, arguing that the recovery of BNDES will allow Brazil to increase its presence in Africa.
Source: Diário Económico
