Mozambique cuts €31.8M debt to top three bilateral creditors

Mozambique reduced its debt to its three largest bilateral creditors by 31.8 million euros in the second quarter of 2026, led by a significant decrease in debt owed to Portugal. The total bilateral debt stock to China, Japan, and Portugal fell from 1.795 billion euros in March to 1.763 billion euros in June. Portugal's exposure dropped by 18.6 million euros, while China and Japan saw smaller reductions, though China remains Mozambique's dominant bilateral creditor. Mozambique's total external debt fell to 7.571 billion euros, attributed to repaying matured credits. The central bank warned that persistent delays in public debt payments continue to constrain the financial market's normal functioning.