The Mozambican government says Prime Minister Carlos Agostinho do Rosario will visit Washington from Tuesday to Friday for discussions with the International Monetary Fund (IMF) and the World Bank over its unreported debts which were recently revealed.

He will meet IMF Managing Director Christine Lagarde and separately with World Bank staff. He is also scheduled to hold talks with the United States authorities, a statement from Rosario’s office said Monday.

The statement said the Prime Minister will “confirm the total debts contracted by public companies, with State guarantees, that do not appear in the statistics, and were not reported to the IMF, in the context of the Economic Programme under way, for reasons that will be dealt with during the meetings”.

A technical delegation from the Ministry of Economy and Finance will also visit Washington for in-depth talks with IMF technical aspects concerning the country’s public debt, the statement added.

This statement confirmed that there are indeed State-guaranteed debts which were not disclosed to the IMF or to the Mozambican public.

Rosario’s mission to Washington follows the IMF’s cancellation of the visit to Mozambique by an IMF mission scheduled for this week. The director of the IMF’s Africa department, Antionette Sayeh, told a media briefing in Washington Friday that the IMF “received confirmation this week from the authorities of the existence of a large amount of borrowing that had not previously been disclosed to the IMF”.

“The undisclosed borrowing exceeds one billion US dollars and significantly changes our assessment of Mozambique’s macro-economic outlook. We are currently ascertaining in co-operation with the authorities the facts regarding this borrowing,” she added.

“We have advised the authorities that any undisclosed debt-related transactions, irrespective of their purpose, need to be reported transparently and publicly. Such disclosure is essential to ensure full accountability of the government to their citizens and parliament, allow an accurate assessment of the previously undisclosed debt on the macro-economic outlook, and assess the impact of these possible transactions on the IMF-supported arrangements with Mozambique.”

Not only has the IMF cancelled this week’s mission, but it has also frozen lending to Mozambique. In late October 2015, Mozambique applied for a loan of 204.5 million Special Drawing Rights (about 282.9 million US dollars) from the IMF’s Standby Credit Facility (SCF). The IMF governing board granted the request and the first instalment (about 118.9 million dollars) became available in December.

It is now clear that the next instalment will not be released until the IMF receives an explanation of the “undisclosed loans”.

Finance Minister Adriano Maleiane admitted that one such loan for coastal and maritime defences (patrol ships and radar systems) was incurred by the state company Pro-Indicus for 622 million US dollars, guaranteed by the government.

A further claim appearing in some of the media, not yet confirmed or denied by the government, is that the Russian bank VTB has lent 550 million dollars for the Pemba Logistical Base in the north of the country.

The “undisclosed loans” all seem to involve Credit Suisse and VTB, the two banks which, in 2013, organized the sale of the 850 million dollar bond, also guaranteed by the government, of EMATUM (Mozambique Tuna Company). It remains unclear whether the Pro-Indicus loan is wrapped up in the EMATUM bond.

Meanwhile, the World Bank has denied reports that it is suspending its activities in Mozambique. The Bank’s country director for Mozambique, Mark Lundell, said that its relations with Mozambique are firm, and it will maintain its partnership with the country.

Ludell said the World Bank had not frozen any loan to Mozambique. On the contrary, it has just released a credit for 130 million US dollars, of which 120 million are intended to finance projects for adaptation to climate change in 20 Mozambican municipalities. The other ten million, he said, are for undertaking reforms under the Accelerated Programme for Economic Integration.