IMF: Mozambique admits to hiding more than $1 billion in debt

MAPUTO , Mozambique, April 23 (UPI) -- The International Monetary Fund announced Mozambique admitted to hiding more than $1 billion in undisclosed debt.

The announcement comes days after Mozambique's Finance Minister Adriano Malian initially shrugged off suggestions of the debt as the result of confusion. The IMF cut off funding to the Southeast African country as officials work to unravel the situation.

On Saturday, the IMF released a statement announcing that Prime Minister of Mozambique Carlos Agostinho do Rosario met with IMF Managing Director Christine Lagarde and a technical team led by the Vice-Minister of Finance.

"The authorities acknowledged that an amount in excess of $1 billion of external debt guaranteed by the government had not previously been disclosed to the Fund," IMF Mission Chief for Mozambique Michel Lazare said.

Lazare went on to say that the authorities' "extensive disclosure of information" would act as a first step in repairing the relationship between the two entities.