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By Manuel Mucari MAPUTO (Reuters) - Mozambique was heading toward a default on Monday after the government failed to honour a sovereign guarantee behind a $535 million loan taken out by a state-run company to build shipyards that have not materialised, a Finance Ministry source said. The state firm, Mozambique Asset Management (MAM), was unable to make the $178 million payment and the government - which last month admitted to $1.35 billion of secret foreign borrowing - also failed to come up with the cash, the source said. Foreign creditors behind the loan, organised by Russia's VTB Bank, had rejected the war-scarred Southern African country's initial proposals to renegotiate payments, but were still in talks to try to reach a deal, the source added.
South African President Jacob Zuma is appealing against a court ruling that corruption charges against him should be reinstated, his office said. The Pretoria High Court last month ordered a review of a 2009 decision by the National Prosecuting Authority to set aside hundreds of charges against Zuma, terming it "irrational". Zuma's office said the court made a mistake in saying the National Director of Public Prosecutions was not entitled to terminate a prosecution on the basis of misconduct and abuse of the process.