Mozambique’s sole international market bond tumbled in value on Monday after a news report that the new government is weighing a debt restructuring following weeks of post-election protests that have impacted state revenues.
The bond, which matures in September 2031, dropped more than 2 cents on the day to 81.5 cents on the dollar. It had fallen as low as 78.6 cents at the end of last year after a series of deadly protests in the wake of a hotly-contested presidential election in October.
Despite accusations of vote rigging by the opposition, the disputed winner – Daniel Chapo of the ruling Frelimo party – was sworn into office last week.
His new finance minister, Carla Louveira, was quoted by Bloomberg on Sunday as saying the government was now weighing debt restructuring with work on one currently “ongoing”.
Reuters
