Mozambique has secured significant relief on its debt to the Republic of Iraq, with the forgiveness of 80% of the total amount. The remaining 20% will be rescheduled for payment over 15 years, with a grace period of four years, covering the period from 2029 to 2043.

According to an article published by the Ministry of Finance and quoted by Dossiers & FactsThe debt, contracted between 1979 and 1980 in the context of bilateral cooperation, resulted from the purchase of oil and originally amounted to 60.2 million US dollars. However, due to the economic difficulties Mozambique has faced over the decades, the amount accumulated with Iraq has reached approximately 320 million dollars.

With the agreement now reached, the country will benefit from a relief of 256.1 million dollars, substantially reducing its external financial burden. The negotiations took place between February 2 and 6, 2025, in Abu Dhabi, United Arab Emirates, involving senior staff from Mozambique's Ministry of Finance and the country's economic and commercial representatives in Portugal and Spain. On the Iraqi side, members of the Ministry of Finance, the Ministry of Foreign Affairs and the Central Bank took part.

The Ministry of Finance considers the agreement a fundamental step towards sustainable public debt management and improving the country's economic stability.

(Photo DR)