Mozambique bond creditors eye “good faith” debt talks, to meet government again

A group of Mozambique’s international creditors said on Wednesday it hoped to soon start constructive debt restructuring talks with the heavily indebted African country, with follow-up high level meetings scheduled in four weeks time.

Mozambique had tabled the key outlines of a three-pronged proposal to restructure roughly $2 billion in debt during a meeting with creditors in London on Tuesday. However, creditors had been swift to reject the advance, which included some steep write-downs.

Following a second meeting on Wednesday, the Global Group of Mozambique Bondholders (GGBM) said it hoped some with some adjustments there could be “good faith negotiations to reach a fair and equitable solution.”

The group’s legal adviser, Thomas Laryea at Cooke Robotham LLC, told Reuters the group and Finance Minister Adriano Maleiane and his team would meet again for talks in four weeks on the sidelines of the IMF World Bank Group spring meetings starting in mid-April.

The GGBM represents or has the backing of some 80 percent of a Eurobond issue earmarked for restructuring.