Mozambique Finance Minister says hidden debt notion by IMF is just a confusion

Mozambique has disputed claims by the IMF that it has hidden loans of over $ 1 B more than previously disclosed. The country’s Finance Minister says the debt was not previously disclosed due to “confusion”. The IMF cancelled a planned trip to Mozambique this week after announcing last week Friday that it believed the southern African country had concealed debt it had taken on for its defence sector from Credit Suisse and Russia-based VTB Bank. Last year, the international lender agreed to lend Mozambique nearly $ 300 M to help cushion its economy following deep declines in commodity prices. The IMF’s allegations could damage Mozambique’s efforts to rebuild its reputation after proceeds from a successful $ 850 M bond issue in 2012 for its state tuna-fishing company, Ematum, were instead mostly spent on defence.