Mozambique Bonds Slump As Political Tensions Simmer, IMF Deal Remains Elusive
Mozambique’s dollar bonds fell for a sixth straight day amid political violence and uncertainty over a pending International Monetary Fund deal.
The $900 million of notes due 2031 slid 0.2% on Thursday to as low as 80.27 cents on the dollar, the lowest level since January 3, amid a global bond selloff. The fall came after Mozambique’s most prominent opposition leader accused police of firing at his convoy and the IMF said a mission to the country ended without an agreement on unlocking further financing.
The southeast African nation has suffered economic damage in the wake of protests against elections in October that extended the ruling party’s five-decade rule. While unrest has cooled, sporadic demonstrations against the high cost of living have continued across the country.
Venâncio Mondlane, the runner-up in the presidential vote, said his convoy came under police fire Wednesday during a rally on the outskirts of Maputo, the capital. That was hours before other political leaders met to sign an agreement to chart the way toward securing sustainable peace through constitutional changes. Mondlane has been excluded from that process.
Mozambique is set to continue talks with the IMF in the coming weeks as it seeks to unlock about $120 million in funding under an economic programme.
