Austria has written off Mozambique’s debt of 19 million euros, Mozambique’s finance ministry announced on Tuesday.
The debt forgiveness is in line with the World Bank and IMF-sponsored debt relief initiative for Heavily Indebted Poor Countries (HIPC), the statement said.
Mozambique has similar agreements with the Kuwait Fund for Arab Economic Development, the Arab Fund for Economic Development in Africa, and the OPEC Fund for International Development.
Their combined debt forgiveness is in the region of $30-million, the statement added.
Mozambique’s foreign debt has declined significantly under the HIPC initiative, falling from over five billion dollars to around one billion dollars. – AFP