India Gives Debt Relief To Mozambique

India has suspended debt repayment on $700 million concessional loans to Mozambique till the end of the year. On 3rd June 2020, The Prime Minister of India Mr. Narendra Modi called the President of Mozambique Mr. Filipe Nyusi to offer assistance in the fight against COVID-19. Mozambique will soon be receiving medicines including Hydroxychloroquine and Azithromycin from India. The debt relief offer is a part of India's G20 commitments. India has agreed to provide debt relief to all Less Developed Countries (LDCs) in line with its commitments and strategic interests. Mozambique is reeling under heavy debt. They have a GDP to Debt ratio of 1:1. This means that their debt is equal to the goods and services they produce and provide in a year. It is highly likely that India is providing concessional loans and debt relief to counter China's influence in the region. East Africa is an area of interest for China due to its importance in the String of Pearls, a plan to encircle India in order to reduce the chances of an Indian blockade on the Indian ocean. China imports a majority of its petroleum needs and exports a lot of goods through the Indian Ocean. Therefore, The Indian Ocean is of crucial importance for China's economic interests.

India Gives Debt Relief To Mozambique