UK, IMF, WORLD BANK HANG MOZAMBIQUE OVER SCANDAL

UK, IMF, WORLD BANK HANG MOZAMBIQUE OVER SCANDAL

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UK, IMF, WORLD BANK HANG MOZAMBIQUE OVER SCANDAL

– UK Suspends Mozambique Aid after Borrowing Scandal

– Mozambique PM on the Move to Explicate Controversies

UK, IMF, WORLD BANK HANG MOZAMBIQUE OVER SCANDAL
David Cameron, UK Prime Minister

UK, IMF, WORLD BANK HANG MOZAMBIQUE OVER SCANDAL

Britain has halted actions regarding financial aid to Mozambique. This is as a result of an alleged “serious breach of trust” concerning undisclosed debts.

According to Reuters, the suspension of support is due to Maputo’s admission of as much as $1.35 billion (£925.8 million) of previously revealed borrowing of which was to be spent most on maritime security.

UK, IMF, WORLD BANK HANG MOZAMBIQUE OVER SCANDAL
Christine Lagarde, IMF Chairman

“This appears to be a serious breach of trust, so we are working closely with other international partners to establish the truth and coordinate an appropriate response,” Britain’s Department for International Development said in a statement.

The International Monetary Fund (IMF) and the World Bank Group are also en-route same pact with the UK.

UK, IMF, WORLD BANK HANG MOZAMBIQUE OVER SCANDAL

10 days ago, the IMF ceased funding when Mozambique was discovered to have failed to clear debts of more than $1bn (£700m).

For the government, the liabilities recount to ensuring loans taken out by two mostly state-run companies.

In a statement, the UK said it was now “working closely with other international partners to establish the truth and coordinate an appropriate response.”

UK, IMF, WORLD BANK HANG MOZAMBIQUE OVER SCANDAL
Jim Yong Kim, World Bank President

From findings, the IMF is currently executing an analysis to realize if Mozambique has a bearable level of debt. The World Bank is as well waiting for an upshot before it approves any more loans.

UK, IMF, WORLD BANK HANG MOZAMBIQUE OVER SCANDAL
Mozambique Prime Minister

Already, Mozambique’s Prime Minister Carlos Agostinho do Rosario had gone to the IMF headquarters in Washington DC last week to elucidate the position of the government.

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Allegedly, the government has acknowledged that it acted as guarantor for a $622m loan taken out by state-owned Pro-Indicus, and another loan of $535m by Mozambique Asset Management. Both are involved in the maritime industry.

In recent years, Mozambique has had one of Africa’s fastest growing economies with oil and gas discoveries sustaining its projections and fascinating a lot of investment.

UK, IMF, WORLD BANK HANG MOZAMBIQUE OVER SCANDAL