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Significance
In April, they agreed to swap the debt for apparently lower-risk sovereign bonds, but later discovered that Maputo had concealed major outstanding loans, precipitating a crisis of confidence.
Impacts
The Tete-Nacala railway will continue to be vulnerable to attacks by RENAMO militants, making it an unappetising investment prospect.
Investigations into Credit Suisse and VTB by Swiss and UK authorities could reveal further damaging details of Maputo's secret loans.
China will likely wait for the economy to stabilise before committing funding for its proposed industrial parks in Mozambique.
The crisis will create opportunities for investors to buy low-priced assets, as indicated by Atlas Mara's recent property acquisitions.
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2016
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