Africa-Press – Mozambique. Mozambique’s sole international bond tumbled on Thursday after ExxonMobil executives abruptly cancelled a media appearance with the country’s president the previous day.
The cabinet’s sign-off on firm Alvarez & Marsal to assist with a “public debt restructuring” was also unnerving some in the market, investors said.
The bond slid more than 3 cents to 85.5 cents on the dollar before retracing to a 2.2-cent loss.
The press conference with Exxon executives and Mozambique’s President Daniel Chapo was meant to update media on a $30 billion gas terminal. The Financial Times was first to report the cancelled briefing.
The cancellation added to concerns over the resumption of gas projects, which are key to the country’s revenue, as attacks from an Islamist insurgency intensify in the area around the facility.
“The headlines are not supportive since yesterday,” said Samir Gadio of Standard Chartered, also citing news of unrest in Cabo Delgado, where the gas facilities are located.
Finance Minister Carla Loveira also told journalists on Wednesday that the country was developing a set of reforms to public debt sustainability, including a public debt management strategy and revisions to capital market regulations.
“One of the greatest challenges facing our economy is the sustainability of public debt,” she said.
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