Mozambique's debt strategy.
The Global Group of Mozambique Bondholders (GGBM), who hold approximately 68% of Mozambique’s defaulted Eurobonds, last week agreed in principle to the government’s latest restructuring offer. The news followed reports the previous week that state-owned hydrocarbons company Empresa Nacional de Hidrocarbonetos (ENH) could secure funding from Russia’s Gazprombank to help finance its portion of major liquefied natural gas (LNG) deals. Ahead of the October 15 general elections, the cash-strapped FRELIMO government is struggling to balance a fragile peace deal with rebel-movement-cum-leading opposition RENAMO and an ongoing debt scandal.
The pope's imminent visit to Mozambique will provide FRELIMO and Nyusi with much-needed positive PR opportunities ahead of the elections.
Progress on infrastructure projects related to major gas projects will likely slow until after the polls.
New deals with Russia could prove a step back for transparency, given the signing of an information protection deal between the two states.
