The group of 14 donors and funding agencies who provide direct support to the Mozambican budget have decided to suspend that financial aid, in response to last month's revelations about over a billion dollars’ worth of undisclosed, government guaranteed loans.
 
The loans are to Proindicus (US$622 million) - a company set up to provide security for offshore oil and gas operations and for shipping in the Mozambique Channel - and to Mozambique Asset Management (US$535 million dollars), the latter is intended to provide maritime repairs and maintenance.
 
The budget support group, known as the Programme Aid Partners, consists of the World Bank, the African Development Bank, the European Union, the United Kingdom, Austria, France, Portugal, Spain, Italy, Canada, Sweden, Switzerland, Ireland, and Finland.
 
To read the article titled, “Donors suspend budget support,” click here [2].