VTB Said to Seek Resolution to Mozambican Interest Payment
- State-owned company missed interest payment due May 23
- Mozambique disclosed $1.4 billion of hidden loans last month
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VTB Bank PJSC is working with the Mozambican authorities to resolve the failure by a state-owned company to make an interest payment on its loan, a person familiar with the matter said.
The lender, based in Moscow, also expects that in the event of Mozambique Asset Management defaulting on the $178 million payment, the debt will be covered by a government guarantee, the person said, declining to be identified because they aren’t authorized to comment on the matter. MAM, as the state-owned company is known, was scheduled to make the interest payment on the $535 million loan by May 23.