Mozambique To Renegotiate Debt After Agreement on New IMF Program

President Daniel Chapo of Mozambique said on Wednesday that his government will start talks with creditors to renegotiate it’s debt after reaching an agreement on a new program with the International Monetary Fund.

iThe southern African country said it is currently in talks with the IMF on a new facility to stabilize the economy, curb its reliance on natural resources and restore investor confidence, Chapo said in a Bloomberg Television interview. He said a deal could follow a regular IMF mission in March.

“What we want at this moment is to conclude the agreement with the IMF and then move on to the aspect you are mentioning, namely the renegotiation of the debt with international partners,” Chapo said.

In response to whether the debt talks would include changes to the terms of Mozambique’s U$900million bond due 2031, Chapo noted, “Not at the moment. We will consider all of this after closing this package, which I call the package for stimulating the country’s macroeconomic situation.”

The bond led losses among the worst performers in emerging markets on Thursday and its yield jumped 51 basis points to 14.4% as of 8:30 a.m. in London, according to CBBT composite pricing.

Mozambique’s last IMF program effectively ended in early 2025, when the government opted not to proceed with the remaining reviews under its three-year Extended Credit Facility.

China holds about 14% of Mozambique’s external public debt, which totaled around $9.8 billion at the end of 2024.