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Vol 54 No 23

Published 15th November 2013


Mozambique

Alarm over new debts

After the cancellation of much foreign debt, the government has embarked on a commercial borrowing spree

The government is on a credit binge and is taking on billions of dollars’ worth of loans. Its new-found creditworthiness is based on wealth from mineral resources and on debt relief. Much of the new debt is expensive commercial credit at high rates of interest and it is being used to finance projects. Some of them are of doubtful utility but they are dear to the heart of President Armando Guebuza and the governing Frente de Libertação de Moçambique (Frelimo).

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