Iraq forgives 80% of Mozambique’s debt

Iraq has agreed to cancel 80% of Mozambique’s bilateral debt, writing off $256.13 million of the total $320.16 million, the southeast African nation’s finance ministry said. The remaining 20% will be restructured over 15 years, with a four-year grace period from 2029 to 2043.

The original debt, incurred in 1979-1980 for oil supply agreements, was initially $60.26 million but had grown over time. Negotiations took place in Abu Dhabi from February 2-6, 2025, involving senior officials from Iraq’s Ministry of Finance, Foreign Ministry, and Central Bank, along with Mozambique’s Finance Ministry and its Economic and Commercial Advisor in Portugal and Spain.