JOHANNESBURG, March 18 (Reuters) – The World Bank is working with Mozambique to tackle the country’s mounting debt challenges, a senior bank official said, as its borrowing costs surge, highlighting pressure on its finances against a backdrop of heightened geopolitical risk.
The country is struggling to stabilise its economy, burdened by debt, weak growth and the impact of climate shocks. Hopes of a recovery hinge partly on the restart of major liquefied natural gas projects.
Fily Sissoko, World Bank regional director for Mozambique, said a Debt Sustainability Analysis, drafted with the International Monetary Fund and published in February, showed debt was not sustainable.
“The government is…