Mozambique Gets Green Light for Eurobond Debt Swap Plan

Creditors holding 99.5% of Mozambique’s Eurobond support its debt restructuring proposal, the country’s government said in a statement on Monday, paving the way for an overhaul of part of its heavy debt burden, Reuters reported. Mozambique said in May it had agreed a restructuring deal “in principle” with the majority of holders of the $727 million notes maturing in 2023 MZ139100352= after a hidden debt scandal in 2016 prompted the International Monetary Fund and foreign donors to cut off support, triggering a currency collapse and a default on the country’s sovereign debt. One of the world’s poorest countries, Mozambique is also trying to restructure other chunks of its debt, which has seen its debt-to-GDP ratio hit 113%, IMF data shows. Read more