October 26, 2016/Reuters

The International Monetary Fund is ready to assist Mozambican authorities in debt negotiations with creditors after the finance ministry warned borrowing levels were unsustainable, IMF country head Ari Aisen said on Wednesday.

Mozambique told creditors on Tuesday that the government must renegotiate repayment terms if it is to agree a new aid deal with the IMF by early next year.

“IMF staff acknowledges the Mozambican authorities’ intention to engage in discussions with certain creditors with a view to restore Mozambique’s debt to a sustainable path,” Aisen said in a statement.

“IMF staff stands ready to assist the authorities in their endeavor.”

(Reporting by Manuel Mucari; writing by Joe Brock; Editing by James Macharia)