Mozambique’s government bonds dropped in value after news about plans to restructure its debt

On Monday, Mozambique’s solitary international market bond experienced a decline in value as a result of a news report that the new government is considering a debt restructuring in response to the prolonged post-election demonstrations that have had an impact on state revenues.

The price of the bond, which is set to mature in September 2031, decreased by over 2 cents on the day, reaching 81.5 cents per dollar. A succession of murderous protests in the aftermath of a hotly-contested presidential election in October had caused it to plummet to as low as 78.6 cents at the end of last year.

Despite the opposition’s allegations of vote rigging, the disputed victor, Daniel Chapo of the governing Frelimo party, was sworn into office last week.

His new finance minister, Carla Louveira, was quoted by Bloomberg on Sunday as stating that the government is currently considering debt restructuring, with work on one presently “ongoing.”