Mozambique Nears Debt-Restructuring Deal With Russia’s VTB, IMF Says

Mozambique reached an agreement in principle with Russia’s VTB Bank PJSC on the restructuring of a loan that forms part of the nation’s $2 billion hidden-debt scandal, according to the International Monetary Fund, Bloomberg News reported. The southeast African nation has sought to restructure the loans since 2016, when the government admitted to the IMF it had contracted the bulk of them in secret, breaching an obligation to notify the Washington-based lender of any new credits. The U.S. Department of Justice and the Mozambican authorities are investigating the loans. Talks between Mozambique and VTB on the lender’s $535 million loan to state-owned Mozambique Asset Management “are nearly finalized with an agreement in principle reached,” the fund said in an April 19 debt-sustainability analysis that’s yet to be made public and was obtained by Bloomberg. Read more