Campaigners are calling on the UK to prevent vulture funds from using British courts to pursue the debts of poor countries after it emerged that Mozambique could be the first in a wave of states facing a new debt crisis sparked by the commodity price crash.
Mozambique, one of the worlds fastest growing economies for much of the past decade, admitted on Tuesday that its debt levels are unsustainable and that it must restructure repayments if it is to receive further aid from the International Monetary Fund (IMF). Like many poor countries, Mozambique is vulnerable to falling commodity prices and higher interest rates.
The countrys government revealed in April that it had secretly taken out loans of $1.1bn (£901m) from two London-base…
Read the full article at: https://www.theguardian.com/global-development/2016/oct/27/mozambique-debt-crisis-first-sign-global-financial-shockwave