How to Wreck Africa’s Most Promising Economy
- Lagarde decries ‘concealing corruption’ in Mozambique debt
- $1.4 billion in previously secret loans discovered in April
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Even by the standards of Africa, it’s been a wild ride for Mozambique. There’s little sign it will end well.
Blowing through more than $2 billion of borrowed money just as the currency and the price of commodity exports plunged has left the former Portuguese colony with near-empty coffers. Its creditors, which bought debt sold by Credit Suisse Group AG and VTB Group, may be left holding the bag. Nor does it help that the International Monetary Fund is raising questions about the government’s transparency and its finances.