China will forgo accrued 2015 interest on money owed to the country by Mozambique; and reduce interest on China-supplied credits in the coming years, said Mozambican President Filipe Nyusi after meeting last week with his Chinese counterpart, President Xi Jinping.
Mr Nyusi did not reveal the exact amount of money involved, reported Mozambican news agency AIM on Saturday, but did say interest paid in the coming years on its Chinese credits would be below the previously stated levels of 1.5 percent or 2 percent. According to the report, Mozambique’s debts to China amounted to US$886 million as of the first half of 2014.
Mr Nyusi met with Mr Xi on Thursday in Johannesburg, South Africa, on the sidelines of the Second Summit of the Forum on China-Africa Cooperation (FOCAC).
Between 2010 and 2012 Mozambique received US$42 million in grants and more than US$1 billion in investment from China for 88 projects, AIM reported.
