Mozambique Nullifies State Guarantee on Loan Linked to Eurobond
- Constitutional Court scrapped guarantee for tuna-fishing loan
- Ruling comes three days after agreement on bond restructuring
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Mozambique’s Constitutional Court nullified a government guarantee on a loan linked to the nation’s Eurobonds, potentially undermining a deal reached last week to restructure the debt.
The judgment came three days after bondholders agreed with the government to reorganize $727 million of Eurobonds that Mozambique defaulted on in 2017. While bondholders said the nullification would have no impact on their agreement, lawyers said the decision may invalidate the debt.