The World Bank is putting a hold on new development support for Mozambique after the government was shown to have hidden some $1.4bn (£960m) in debt, the AFP news agency is reporting.
It was waiting for the International Monetary Fund (IMF), which suspended aid last week, to finish its investigation into the undisclosed borrowing, it says.
The government says most of the previously undisclosed debt was related to it acting as a guarantor for two loans taken out by quasi state-run companies in the maritime industry.
While the government had not specifically borrowed the money itself, some experts say that by acting as a guarantor, it technically had taken on the liability, the BBC’s Africa Business Report editor Matthew Davies.
A Human Rights Watch researcher tweets about tension in the capital.
BBC Africa
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