Risk firm Kroll was looking into undisclosed state loans worth 2 billion dollars, but it said that the Mozambican government did not collaborate fully with the firm's investigation and that the CEO of the three companies openly blocked attempts to locate futher information. Expectations that the IMF and the international donor community would start talks on new funding agreements with Maputo have subsequently stalled, while mounting domestic loans taken out by the government have further soured relations with international financial institutions.
Lack of transparency over financing of the state budget will preclude large-scale donor budgetary assistance in the short term.
The private sector will increase its calls for the government to renegotiate the scheduling of domestic debt repayments.
The ongoing debt fallout could raise infrastructure financing costs and delay several liquefied natural gas (LNG) mega-investments.
