Mozambique was first confirmed defaulted on the debt before VTB

The Minister of Finance of Mozambique Adrian Malejane said that the Mozambique state Fund Asset Management (MAM) fails to 23 may to hold the first payment on the loan of $535 million received from the Russian Bank VTB, and now carries on negotiations on debt restructuring, according to Bloomberg.

The Agency notes that this is the first official confirmation of the Mozambican default.

Malelane noted that the government encouraged Mozambican companies to find a solution to avoid turning their debts into the national debt. He added that MOM and another state-owned company Proindicus have taken loans for $1.6 billion.

Bloomberg notes that the government has not informed the investors about the presence of these corporate debts, when in April have converted a loan issued by the state fishing company Ematum, in sovereign Eurobonds in the amount of $727 million

On non-payment of interest on the loan, VTB it became known from the publication The Wall Street Journal from June 3. The press service of VTB reported then that the Bank eliminates material losses due to transaction and loan of $535 million, the Bank transferred $485 million investors who are active in the region.

“The loan MAM is $535 million, and the risk at this position in the amount of $485 million was transferred to the investors who are active in the region. The balance of the debt without any material losses for VTB. In addition, we are actively working with the government of Mozambique to stabilize the situation, and currently does not expect its deterioration”, — reported “Interfax” the press service of VTB.