Iraq Agrees to Debt Reduction for Mozambique

Iraq has agreed to forgive 80% of Mozambique's bilateral debt, with the remaining 20% restructured over 15 years, following a four-year grace period (2029-2043).

The original debt of US$60.26 million was incurred in 1979-1980 for oil supply agreements but had grown in the meantime to US$320.16 million. Under the agreement, US$256.13 million has been forgiven.

Negotiations took place from 2-6 February 2025 in Abu Dhabi, involving senior officials from Iraq's Ministry of Finance, Foreign Ministry, and Central Bank, alongside representatives from Mozambique's Ministry of Finance and its Economic and Commercial Advisor in Portugal and Spain.