jubilee germany: The government had kept the existence of these loans secret, according to Deutsche Welle. When the details were finally exposed, the International Monetary Fund responded by freezing payments to Mozambique. In a letter to its creditors, it asked for the deferment of "hidden debts" - a reference to loans totaling 1.3 billion euros which three state-owned concerns had taken out with international banks. This was a severe blow to the southeast African country which has been plunged into an economic crisis by falling commodity prices and the depreciation of the national currency, the metical. Its currency has fallen by 70 percent against the US dollar this year Jürgen Kaiser from Jubilee Germany , an NGO which campaigns on behalf of developing countries with unsustainable debt levels, told DW that simply suspending repayments won't be enough to put Mozambique back on the road to fiscal health. "Our assessment is that the country is already insolvent," he said. Lower commodity prices have hit Mozambique hard.
(news.financializer.com). As
reported in the news.
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