Bonds Issuance and the Current Debt Crisis in Mozambique

There are various ways and sources from which a country can mobilize resources to finance its development. These sources of funds can be domestic or external. The major sources of external funding are multilateral and bilateral debts. Countries can also borrow from the domestic market. The issuance of bonds is another way of raising funds from both international and the domestic markets. National governments can also guarantee or assume the bonds issued by parastatals and other private companies. This policy brief gives an analysis of the so called Tuna Bonds in Mozambique and attempts to determine how they are related to the Mozambican debt crisis. It answers the question whether the tuna bonds have fuelled the crisis or not. Lastly, recommendations to Mozambique will be given.