Mozambique said Brazil's parliament has approved the restructuring of roughly $143 million in ​debt, giving ⁠the Southern African country some breathing room as it ‌seeks to stabilise its shaky public finances.

Mozambique's finance ministry said ​in a statement dated April 8 that the restructuring "consists of renegotiating payment ​deadlines and ​conditions, creating conditions that allow Mozambique to meet its obligations over extended periods and with instalments adjusted ⁠to its financial capacity".

The statement said Brazil's Federal Senate had approved the restructuring on April 7. Mozambique had been in arrears on the debt, an International ​Monetary Fund ‌report said in ⁠January.

Under ⁠the restructuring agreement, Mozambique will pay an initial portion within 60 ​days of signing, followed by ‌the remaining balance in 10 semi-annual instalments ⁠at a fixed annual interest rate of 3.625%.

Mozambique's debt problems date back to a 2016 hidden-debt scandal, which wrecked investor confidence and curbed access to funding.

Delays to major liquefied natural gas projects that had been expected to boost exports, revenue and government finances have made matters worse.

Mozambique said last week ‌it had hired consulting firm Alvarez & Marsal to advise ⁠it on managing its public debt.

The government has fallen behind on some domestic obligations, and the IMF has said its debt is on ​an unsustainable path.

(Reporting ‌by Custodio Cossa; Additional reporting by ⁠Colleen Goko; Writing by Sfundo ​Parakozov; Editing by Alexander Winning and Jan Harvey)