Mozambique’s bonds tumbled after the African nation, home to some of the world’s richest gas reserves, stunned investors by declaring a state of debt distress.
The former Portuguese colony will need to restructure its debts with the hope that the International Monetary Fund will resume aid, according to a 20-page presentation posted late Tuesday afternoon on the Finance Ministry website. Creditors will be reluctant to have that conversation and take the heavy losses, though the alternative is default.
