Donors are demanding that Mozambique makes full disclosure of the state of its finances before they can resume aid that was withdrawn after the government admitted to hiding more than $1.4 billion in debt.
The southern African nation may have missed a May 23 deadline for a state-owned company, Mozambique Asset Management, to make an interest payment on a $535 million loan. The potential default has raised concerns that the cash-strapped country won’t meet other obligations, including on a $727 million Eurobond issued in March.
