Mozambique’s Eurobond Strategy May Damage Restructure Prospects
- Government had money to pay interest, investor adviser says
- Bondholder group ready to discuss situation if approached
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Mozambique’s decision to skip an interest payment on its Eurobonds this week was a strategic move that will be damaging for the debt-restructuring process it started, a group of investors said.
“The non-payment of Wednesday was a strategic default and was not driven by the inability to make the payment,” said Charles Blitzer, a Washington-based consultant who’s advising a group of creditors that hold the majority of the bonds. “This strategy we think is not conducive to moving forward, not just with us but more broadly. It’s not conducive to restoring confidence from future lenders and investors.”