Mozambique could gain credibility in the international financial market as a result of the agreement reached this weekend, according to economist Elcídio Bachita.

"This agreement restores our country's credibility in the capital market and in the international financial system. It means that Mozambique will now have an increasingly open international financial market and will be able to access credit and loans at relatively more competitive prices," he said.

Said the economist in an interview with Radio Mozambique that the agreement will pave the way for growth in the Mozambican economy, creating a boost and improvement in the state's budget programming.

The Minister of Economy and Finance, Max Tonela, announced on Monday that an out-of-court settlement has been reached with three European banks for debt relief as part of a process that began in London in February 2019.

Meanwhile, the ruling on the agreement will be presented on July 17 by the London Court, and according to Elcídio Bachita, Mozambique could win the case.

"I think Mozambique will win the case. When the parties decided to reach an out-of-court settlement with Mozambique it means that they no longer want to continue with this situation of litigation," he said, noting that a purely judicial resolution of the case "could lead to a lot of costs and devastating consequences for the country".

On the other hand, he believes that Mozambique could win a case against PrivInvest if the parties fail to reach an agreement in talks, even though the debt is illegal.

PrivInvest was the institution responsible for orchestrating the illegal debt contracting scheme, putting senior Mozambican leaders and people close to them in the loop.

"There is a need for PrivInvest to be held criminally responsible in order to compensate the Mozambican state with around two billion US dollars," he said. (Photo: Trial of the Hidden Debts case, in Maputo).