Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


IMF suspends aid to Mozambique

19 April 2016, 22:51

Washington - The International Monetary Fund has suspended aid to Mozambique after discovering the country had hidden debt of more than $1 billion.

"The undisclosed borrowing exceeds $1 billion and significantly changes our assessment of Mozambique's macroeconomic outlook," said Antoinette Sayeh, head of the IMF's African Department, in a statement to AFP on Tuesday.

As a result, the global crisis lender has cancelled a staff mission to the African country this week that was part of its $283 million standby credit facility and a policy support programme from the IMF.

That cancellation of the mission effectively puts on hold any disbursements from the facility. A first instalment of $117.9 million was made in December to help the country cope with lower commodity prices that have depressed revenues.

Mozambican Prime Minister Carlos Agostinho Rosario on Tuesday began an emergency visit to Washington to meet with IMF and World Bank officials.

Aid has been suspended "pending a full disclosure and assessment of the facts," on the unreported borrowing, Sayeh said.

"It is difficult to imagine how the government will provide a satisfactory explanation for its handling of the debt," wrote Anne Frhauf of the New York-based Teneo Intelligence in a note to investors.

"All this will have a massive impact on virtually every financial lifeline available to Maputo, at a time when the country thought it was just getting past its balance of payments tight spot."

Mozambique is one of the poorest countries in the world, and a quarter of its budget comes from donors.

The discovery of oil in 2010 sparked a period of optimistic growth and investment, but the fall in world prices of raw materials saw the local currency, the metical, drop by more than 40% against the US dollar last year.

In December 2014, the IMF froze financial aid to another African country, Mali, for six months after discovering "lapses" in public financial management and the purchase of a new $40 million presidential aircraft.



Read more from our Users

Submitted by
Wilwon Ochieng
Deputy Governor's ally found with...

The EACC has recovered KES 2 million in fake currency from a close ally of Deputy Governor for Tharaka Nithi Eliud Mati. Read more...

Submitted by
William Korir
Mudavadi given permission to join...

Musalia Mudavadi has been ghranted permission by his party to join the CORD Coalition. Read more...

Submitted by
Victor Tinto
EACC officers raid Deputy Governo...

EACC officers raided the home of a Deputy Governor as theft case continues in court. Read more...

Submitted by
Wilson Ochieng
New IEBC bosses to be named Novem...

New IEBC bosses will be named on November 30. Read more...

Submitted by
William Korir
DP Ruto has spoilt my name, activ...

DP William Ruto has spoilt my name, activist complains. Read more...

Submitted by
Wilson Ochieng
Apologise for attack on Auditor G...

Apologise for attack on Auditor General, President Uhuru Kenyatta is told by Kisumu Senator Anyang Nyong'o. Read more...