Iraq has agreed to forgive 80% of Mozambique’s bilateral debt, cancelling $256.13 million of $320.16 million. The remaining 20% will be restructured over 15 years, featuring a four-year grace period from 2029 to 2043. This debt originated from oil supply agreements between 1979 and 1980 and grew over time, with negotiations held in Abu Dhabi involving multiple officials from both countries.
Iraq has made a significant move by forgiving 80% of Mozambique’s bilateral debt, as announced by the Southeast African country’s finance ministry. This action results in a debt cancellation of $256.13 million from the original total of $320.16 million owed by Mozambique. The remaining 20% of the debt will be restructured over a 15-year period, which includes a four-year grace period extending from 2029 to 2043.
The original debt was incurred during the period of 1979 to 1980, primarily for oil supply agreements, starting at $60.26 million before escalating over time. The details of this agreement were negotiated from February 2 to February 6, 2025, in Abu Dhabi. High-level officials from Iraq’s Ministry of Finance, Foreign Ministry, and Central Bank participated, alongside representatives from Mozambique’s Finance Ministry and an Economic and Commercial Advisor based in Portugal and Spain.
This debt forgiveness agreement emphasizes Iraq’s commitment to supporting Mozambique’s financial stability and economic development. The restructuring of the remaining debt will provide Mozambique with manageable repayment options, allowing the country to focus on recovery and growth in the coming years. Overall, this move symbolizes strengthening bilateral relations between the two nations.
Original Source: shiawaves.com
