MOZAMBIQUE GOVERNMENT MAY DEFAULT ON EUROBOND THIS WEEK: LESSONS FOR ZAMBIA
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By Peter Chazya Sinkamba President Green Party of Zambia secretariat@zambiagreens.org The Mozambique government says it won’t honor a $59.8 million Euro-bond interest coupon payment due tomorrow, January 18. If the Mozambique government fails to honour its interest obligations tomorrow, this would be Africa’s first sovereign default in five years. Government has a 15-day grace period to pay the coupon after Jan. 18, according to the bond’s prospectus. Analysts see Mozambique defaulting on the Eurobond interest obligations, on the $727 million bonds due January 2023. Mozambique’s finances have deteriorated in the last few years, following the collapse of base-metal exports on the world market....
