Wednesday , June 28 2017
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Maputo Confidential

Summary:
A ‘confidential’ presentation by Mozambique’s government to nervous bondholders in London on Tuesday that it is in “debt distress,” and that they should lawyer-up for a restructuring, turns out to have been… not quite so confidential: Click above for the full presentation, which was posted publicly on the ministry of finance’s website. The presentation notes that on every one of five indicators used by the IMF to test the level of debt and capacity to service debts (against GDP, exports and so on), Mozambique is highly distressed. It wants a loan from the IMF early next year though, so: Mozambique would welcome formation of one (or several) representative creditors’ committee(s) to engage in discussions with the Ministry of Economy and Finance and its advisors… Mozambique has appointed Lazard Frères (financial advisor) and White & Case LLP (legal advisor) as its exclusive advisors to support the debt solution process.

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A ‘confidential’ presentation by Mozambique’s government to nervous bondholders in London on...

Joseph Cotterill
Joseph is the FT’s Southern Africa correspondent based in Johannesburg, after previous stints as private equity correspondent and on the Lex column. But he still writes for Alphaville, which he joined way back in March 2010 — right in the middle of the Greek bailout crisis. He has been very interested in all things credit and sovereign debt ever since…

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