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UK suspends country aid after borrowing scandal

"This appears to be a serious breach of trust, so we are working closely with other international partners to establish the truth and coordinate an appropriate response,"

A fisherman cleans his boat beneath Maputo's skyline, Mozambique, August 15, 2015.

Britain is withholding all financial aid payments to Mozambique following Maputo's admission of as much as $1.35 billion of previously undisclosed borrowing, much of it for maritime security.

"This appears to be a serious breach of trust, so we are working closely with other international partners to establish the truth and coordinate an appropriate response," Britain's Department for International Development said in a statement.

The International Monetary Fund said on Saturday that Mozambique had admitted to having over one billion dollars of undisclosed debt.

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