Mozambique said China’s government had agreed to let it reschedule some debt payments, adding the deal would help relieve immediate pressure on its public finances.
The finance ministry statement, issued on Monday, did not give the amount of debt payments that had been rescheduled.
“Beyond adjusting payment schedules, the process aims to create more fiscal space to pursue national priorities,” the statement added.
Official data show Mozambique owed China about $1.28 billion at end-June, nearly 15% of its total external debt, making China its largest bilateral creditor.
Mozambique said in the statement on Monday the agreement with Beijing would be formalised by certain instruments with the Export-Import Bank of China, without elaborating.
The resource-rich Southern African country has been grappling with a heavy debt burden, which a World Bank and International Monetary Fund analysis has deemed unsustainable.
Its problems date back to a hidden-debt scandal that erupted in 2016, wrecked investor confidence and curbed access to funding.
Delays to major natural gas projects that were expected to boost exports, revenue and government finances have made matters worse.
