4 June 2019

Mozambique: Constitutional Council Declares Secret Debt Illegal

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"The constitutional council declares the nullity of the acts inherent to the loan contracted by Ematum SA, and the respective sovereign guarantee granted by the government in 2013, with all legal consequences," the Constitutional Council ruled in a declaration published today.

In effect, it is a ruling that all three of the loans in the $2 bn secret loan package are null and void and that the government guarantees are illegal.

The government is attempting to negotiate a new deal with the Ematum bondholders, but this will force the whole matter to be reconsidered.

The constitutional council case was brought by the civil society coalition the Budget Monitoring Forum (Forum de Monitoria do Orçamento - FMO) which has taken the lead in the campaign against the secret debt.

The full ruling, in Portuguese, is on http://www.cconstitucional.org.mz/Jurisprudencia/5-CC-2019

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