China pardons part of Mozambique’s debt

China will pardon 30 million yuan (about USD5 million) in bilateral debt owed by Mozambique, said the Chinese Deputy Trade Minister Zhang Xiangchen this week in Maputo.
The announcement was made after Zhang signed a document to that effect which was signed by Deputy Minister of Economy and Finance, Maria Isaltina Lucas, on behalf of Mozambique.
The deputy minister of Foreign Affairs and Cooperation, Nyeleti Mondlane, present at the signing ceremony, said China’s decision will help reduce pressure on servicing public debt in Mozambique.
“The decision to partially pardon interest-free debt will minimize the pressure on servicing public debt in Mozambique and contribute to the materialisation of the objectives in the government’s five-year plan,” Mondlane said, quoted by Mozambican news agency AIM.
In addition to this agreement, the two countries also signed another, under which China will finance the construction of 200 water wells in Mozambique and a third agreement in the agricultural sector.  MDT/Macauhub