(Ecofin Agency) - A team from the International Monetary Fund will visit Mozambique from December 1 to 12, 2016, to talk about funding, a statement from the Washington-based institution says.
This is step forward since the IMF halted its support to the nation after discovering close to $2 billion of loans hidden by Mozambique.
“Mozambique has implemented sound economic policies and allowed an audit of $2 billion of controversial foreign borrowing,” the statement says. Shedding light on the debt was one of the conditions fixed by IMF to come back to the country. Its leaders complied, hiring a U.S. firm to help them in the process.
IMF’s other condition was for the country to reach an agreement with its lenders to restructure the debt. This is quite complex, especially since some of the nation’s bondholders are not willing to negotiate downwards. Subsequent to IMF’s visit, Mozambique should have a clear view of its financial situation.