President Chissano of Mozambique calls for immediate debt cancellation

The growing call for immediate debt cancellation for flood-stricken Mozambique has been heightened by a strong public appeal by the Mozambican government urging creditors to cancel all of the country's debts.

Having repeatedly appealed for emergency aid, President Joachim Chissano drew attention to the importance of debt cancellation for Mozambique's long-term reconstruction. Speaking to Reuters, Foreign Minister Leonardo Simao claimed that previous debt relief was inadequate given the scale of the crisis.

Simao said: "The time has come for the world to take the most needed additional step, which is the complete forgiveness of our debt. This will help us also to devote our resources for rebuilding the country and to provide needed services to the population.”

Mozambique owed $8.3 billion in 1998, and despite some debt relief last June is still paying $1.4 million a week in debt repayments. Even after further relief planned for next month, it will still pay almost $1 million each week. Jubilee 2000 has publicly called for total debt cancellation, as money is urgently needed to stay in the country where it will be needed for the reconstruction effort.

Bishop Bernardino Mandlate, of the Mozambique Debt Group, commented:

“More than ever before, we call on the international community to cancel our debt immediately so that our country can concentrate on reconstruction of the lives of those affected and of the destroyed infrastructures. It is unthinkable that the country can continue to drain itself of the much needed resources at this point in time to service the debt which we believe that morally and even financially has already been paid back. “

Last week, Graca Machel, former First Lady of Mozambique and UNICEF Ambassador urged Mozambique's creditors to cancel 100% of its debts, echoing a call by the international Jubilee 2000 movement who have been putting pressure on creditors. Aid agencies such as Oxfam, Christian Aid, Save the Children Fund and CAFOD have also called for cancellation.

The British Government responded to the political pressure by announcing that the government would stop collecting debt payments and cancel 100% of bilateral debts. So far, the UK is the only creditor to officially promise to cancel bilateral debts owed by Mozambique. Other creditors - the biggest being the IMF and World Bank, France, Italy, Brazil and Russia - are under growing pressure to respond.

• Full Briefing on Mozambique and Debt