Brazil Senate approves rescheduling of $143M of Mozambique debt

On April 7, 2026, the Brazilian Senate approved a $143 million debt restructuring agreement for Mozambique, marking a significant step in addressing the country's financial obligations to Brazil. The decision, included in the Executive Branch's message, follows prior approval by the Economic Affairs Committee (CAE) in December 2025 and was brought to the plenary agenda at the request of Senator Nelsinho Trad, the chairman of the Foreign Relations Committee (CRE).

Mozambique's debt to Brazil stems from two sources: the remaining credits from a 2004 restructuring agreement and the financing of the Nacala International Airport in Nampula Province. The Mozambican government ceased payments to the Brazilian National Bank for Economic and Social Development (BNDES) in 2017, after which Brazil assumed the obligations and became the creditor.

Under the new agreement, Mozambique is required to pay an initial installment of $6.7 million within 60 days of the agreement's signing, followed by ten semiannual installments at an annual interest rate of 3.6%. A late payment interest rate of 1% above the contracted rate will apply in the event of delays.

The debt restructuring aligns with broader efforts to strengthen bilateral cooperation between Mozambique and Brazil. Recent discussions between the two nations included plans for the creation of the Development Bank of Mozambique (BDM) and a memorandum of understanding in public finance management and development financing. These developments underscore the ongoing collaboration between the two countries in economic and financial matters.