Debt, aid and poverty in Mozambique : lessons learned from the Mozambican debt crisis

Abstract

In opaque and unregulated financial markets, there can be strong incentives for banks to provide loans even when the appropriate guaranties or assessments are lacking. This is part of the Mozambican debt story, according to NAI researchers Navarra and Rodrigues. In this case, the consequences are most likely to be borne by Mozambican people, strongly affecting their living conditions.

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