Mozambique's economic crisis is set to worsen following the government's announcement that it will miss a $60m (£50m) interest payment on a 2023 bond. 

According to Ceoafrica, the government led by President Filipe Nyusi blames the on-going cash crunch to hidden debt, falls in commodity prices and a cut-off in aid.

It was gathered that the deteriorating macroeconomic and fiscal situation of the Republic has severely affected the country's public finances,"

The country is in talks with the International Monetary Fund (IMF) over resuming support that was suspended in April due to the hidden debt scandal.

Last month, a parliamentary inquiry found that the government broke the law by securing loans worth more than $2 billion in hidden debt that prompted the IMF and World Bank aid cut-off.

The scandal surfaced in 2013, when the government announced a contract for 30 fishing and coastal protection vessels between French shipyards and Ematum, a state-owned company that had previously raised $850 million on the Eurobonds market without lawmakers' knowledge.

In April last year, more hidden debt worth $1.4 billion - contracted without parliamentary approval by two more state-owned firms and the defence ministry - was uncovered.

The government claimed the loans were used to fund military vessels and defence equipment, and said it did not disclose them as a matter of national security.