Hidden Debts in Mozambique 

In Mozambique, hidden debts have become a major issue. Hidden debts are defined as debts that are not disclosed to the public, nor reflected in the budget or national accounts. They are often used to finance projects that the government does not want to be seen as supporting.

Recently, there has been a major scandal in Mozambique concerning hidden debts. In 2016, it was discovered that the government had borrowed over $2 billion in secret loans from foreign banks and investors. These loans were taken out without the approval of the International Monetary Fund, and without any meaningful oversight.

The scandal has had a devastating effect on the country’s economy. Mozambique’s public debt has risen to nearly 80% of its GDP, and the country is now facing a growing economic crisis. The hidden debts have also led to corruption, with some of the money going to private companies owned by government officials.

The scandal has also had a major political impact in Mozambique. The government is now facing increased pressure from international organizations to provide more transparency and accountability. The International Monetary Fund is demanding that the government undertake a full audit of the hidden debts, and to make sure that future debt contracts are properly monitored and reported.

The hidden debt scandal in Mozambique is a major issue, and one that must be addressed in order to ensure a brighter future for the country. The government must take steps to ensure that there is greater transparency and accountability, and that future debt contracts are properly managed. In the long run, this will help the country to recover from the scandal and move towards a more prosperous future.