Mozambique Default May Push Bondholders to Negotiating Table
- Interest payment on $727 million Eurobonds due Jan. 18
- Government told creditors in Oct. it sought debt restructuring
This article is for subscribers only.
Mozambique may force bondholders to end a standoff and begin negotiations after the government said it will miss an interest payment on dollar bonds and will struggle to make debt payments throughout the year.
“Tactically, a payment delay may serve the government’s interests better if the aim is to force bondholders to negotiate,” Anne Fruhauf, the New York-based senior vice president at Teneo Intelligence who correctly predicted Mozambique would miss the payment, said before the announcement.