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Mozambique’s Donors Demand Full Disclosure on Nation’s Debt

  • Group of 14 donors suspend funds after ‘breach of trust’
  • Government wants to restore disbursements as soon as possible
Updated on

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are demanding that Mozambique makes full disclosure of the state of its finances before they can resume aid that was withdrawn after the government admitted to hiding more than $1.4 billion in debt.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.