The Mozambican government has approved a plan to repay the national carrier LAM’s debt through annual instalments.
According to the Council of Ministers, the repayment will be guaranteed by an agreement between the state and commercial banks, reports Club of Mozambique. The amount of the debt was not disclosed.
To manage the process, the government has authorised the Institute for the Management of State Holding to create a special vehicle for settling the debt.
In addition, a new special-purpose company will be formed to secure financing for a majority stake in LAM. This entity will be jointly owned by Cahora Bassa Hydroelectric Power Plant, Mozambique Ports and Railways, Mozambique Insurance Company, and LAM’s shareholders.
