Arrests and new evidence of bribery have totally changed the situation around the hidden debt of US $ 2 billion. Analysts increasingly say that Mozambique should simply say that the debt is illegal and will not be paid – and that there have been significant benefits, in particular improved relations with the IMF.
We first recap the story of the hidden debt. We then look at the IMF and how Mozambique would benefit from a public refusal to pay. Third, we look at what analysts are saying. Finally, we note that any legal action to enforce payment of the debt will take place at the London Supreme Court and we explain why the position has completely changed since the Government of Mozambique received legal advice from London lawyers several years ago.
