Maputo, Mozambique – (African Boulevard News) – Mozambique has reached an out-of-court settlement with Swiss bank Credit Suisse over the infamous $1.5 billion tuna bond scandal. The settlement brings an end to a long and contentious legal battle that has plagued the country for years.
Under the terms of the settlement, Credit Suisse’s new owner UBS has agreed to forgive a portion of the loan that the bank had made to Mozambique in 2013. This forgiveness represents an amount of less than $100 million, according to UBS. The settlement allows Mozambique to avoid a potentially devastating legal judgment and ensures that the country can move forward with its economic recovery.
The tuna bond scandal dates back to 2013 when it was revealed that Mozambique had secretly borrowed $2 billion to fund a series of projects, including a state-owned tuna fishing company and a maritime security program. The loans were obtained through a complex financial instrument known as a “tuna bond,” which was guaranteed by the Mozambican government but kept hidden from international lenders and donors.
The revelation of the hidden debt sent shockwaves through the international community and led to a suspension of aid and investment to Mozambique. The country’s credit rating was downgraded, and its economy suffered a significant blow. Mozambique has since struggled to recover, with high levels of public debt and limited access to international capital markets.
The settlement with Credit Suisse is a significant step towards resolving Mozambique’s financial crisis. It provides much-needed relief to the country’s strained public finances and allows for a fresh start in rebuilding its reputation with international lenders and investors.
Commenting on the settlement, Mozambique’s Minister of Economy and Finance, Adriano Maleiane, expressed his satisfaction, stating, “This agreement is a crucial milestone in our efforts to restore economic stability and regain the trust of our international partners. It sends a positive message that Mozambique is committed to resolving its financial challenges and moving forward.”
The out-of-court settlement also marks a turning point for Credit Suisse and its new owner, UBS. The Swiss bank has faced significant legal and reputational damage as a result of its involvement in the scandal. The settlement allows UBS to put this chapter behind it and focus on rebuilding its image and restoring investor confidence.
While the settlement brings some closure to the tuna bond scandal, Mozambique still faces significant challenges in rebuilding its economy and reducing its debt burden. The government will need to implement fiscal reforms, strengthen governance, and attract new investments to support sustainable growth.
In conclusion, the out-of-court settlement between Mozambique and Credit Suisse represents a critical step towards resolving the $1.5 billion tuna bond scandal. It provides Mozambique with much-needed financial relief and the opportunity to restore its standing in the international community. The settlement also allows Credit Suisse and UBS to move forward and rebuild their reputations. However, the journey to economic recovery for Mozambique is far from over, and the government must continue to implement necessary reforms to ensure long-term stability and growth.
