Iraq has agreed to cancel 80% of Mozambique’s debt, totaling $256.13 million, with the remainder restructured over 15 years. The debt originated in 1979-1980 for oil agreements, originally amounting to $60.26 million. Negotiations occurred in Abu Dhabi, involving senior officials from both countries.

Iraq has made a significant decision to forgive 80% of Mozambique’s bilateral debt, amounting to $256.13 million out of a total of $320.16 million. This decision was announced by the finance ministry of Mozambique. The outstanding 20% of the debt will be restructured with terms spanning 15 years, which will include a grace period extending from 2029 to 2043.

This agreement between Iraq and Mozambique facilitates significant financial relief for Mozambique by alleviating the majority of its debt. The restructuring plan, featuring an extended grace period, aims to support Mozambique’s economic stability during the repayment phase. This collaboration highlights the importance of international cooperation in addressing debt challenges.

Original Source: shiawaves.com