Majorca Daily Bulletin

News | Balearics

Spain writes off Mozambique debts

Spanish Prime Minister Jose Maria Aznar said yesterday that Spain would write off debts owed to it by flood-ravaged Mozambique and would urge other creditors to follow suit. He said in Cairo, where he is attending an Africa-Europe summit, that he had told Mozambique's President Joaquim Chissano of Spain's intention to write off the debt in full. “I myself, at the meeting I have held today with the president of Mozambique, have told him that we are going to write off Mozambique's debt 100 per cent, both public debt and commercial debt”, he told a news conference. He said Spain would urge Mozambique donors, who are due to meet in Rome soon, to pledge to write off commercial debt in addition to public debt, which they had already promised to cancel. Mozambique is urging total cancellation of external debt estimated at about $8.3 billion so it can rebuild areas devastated by floods, in February and March, that killed hundreds of people and displaced hundreds of thousands.

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