/ 13 July 1999

PORTUGAL RESCHEDULES DEBT

PORTUGAL rewarded wide ranging economic reforms in its former colony of Mozambique on Wednesday by rescheduling 90% of the impoverished country’s $470 million bilateral debt. Portuguese finance minister Sousa Franco announced the rescheduling in Maputo on Wednesday during a joint press conference with his Mozambican counterpart, Tomaz Salomao. Franco said the initiative formed part of Portugal’s support for Mozambique’s macro-economic rewards and would further boost the country’s already booming economy. The rescheduling follows a recent U$1,7-billion write-off of Mozambique’s foreign debt in terms of the Highly Indebted Poor Countries (HIPC) initiative. Franco said both initiatives demonstrated Portugal’s continued practical support for Mozambique in Paris Club negotiations for further debt relief.