Angola writes off debt owed by Mozambique

Published Sep 1, 2014

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OIL-RICH Angola was ready to write off half of Mozambique’s public debt, which dated back decades, a Mozambican official said on Friday. The decision, which covers half of the total of about $60 million (R640m) owed, follows a meeting between the two countries last week. The official, who asked not to be named because he is not authorised to speak to the media, said that the remaining $30m would be “transformed into capital for Angolan investment in Mozambique”. The debt dates back to the 1970s and 1980s and was largely incurred by Mozambique importing oil from Angola. Angola had in 2007 agreed to write off $30m of Mozambique’s debt, but the deal was never implemented. “The main idea is to implement economic relations so that they reach the same level as political relations, which are excellent,” the official added. The two countries have been close since they both gained independence from Portugal in the mid-1970s. Both are in the process of reconstructing their infrastructure and economies. – Sapa-AFP

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