June 4, 2019 / 6:14 PM / 3 months ago

IMF welcomes Mozambique's debt relief deal

FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., as IMF Managing Director Christine Lagarde meets with Argentine Treasury Minister Nicolas Dujovne September 4, 2018. REUTERS/Yuri Gripas

LONDON (Reuters) - The International Monetary Fund said on Tuesday it welcomed Mozambique’s agreement in principle to restructure its debt with private creditors, but added the heavily indebted country needed a wider-ranging plan to ensure long-term debt sustainability.

In a statement following its board meeting on Monday, the fund stressed the importance of “strengthening oversight of the entire public debt portfolio, including for state-owned enterprises, to put public debt-to-GDP ratios on a clear declining path”.

On Friday the country’s finance ministry said it had reached a restructuring deal in principle with holders of its defaulted 2023 bonds and that the new arrangement would not offer creditors instruments linked to future gas revenues.

Reporting by Karin Strohecker; Editing by Jan Harvey

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