Mozambique says will not pay bondholders on Jan. 18

A fisherman cleans his boat beneath Maputo's skyline, in this picture taken August 15, 2015. REUTERS/Grant Lee Neuenburg/File Photo·Reuters· (Reuters)

JOHANNESBURG (Reuters) - Mozambique will not make a Jan. 18 payment to holders of its 2023 bond because of its deteriorating economic and fiscal situation, the finance ministry said on Monday. The southern African nation, whose total foreign obligations are roughly equivalent to its GDP, said its financial difficulties made its ability to repay debt this year "extremely limited". (Reporting by Ed Cropley; Editing by Joe Brock)

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