Mozambique and Credit Suisse Reach Out-of-Court Settlement in “Hidden Debt” Scandal.
In a significant development, Mozambique and Credit Suisse have come to an out-of-court settlement regarding the “hidden debt” affair. UBS, which acquired its Swiss counterpart, announced this mutual resolution on Sunday.
The announcement coincides with the scheduled opening of a trial in London’s High Court to address the scandal that had severe consequences for Mozambique, one of Africa’s poorest nations.
The agreement, conveyed by UBS to AFP via email, states that Mozambique and Credit Suisse have “amicably settled the legal proceedings initiated in London.”
Both parties have released each other from any liability and claims related to the transactions and express their satisfaction in resolving this longstanding dispute.
On Friday, the Financial Times reported that UBS was eager to secure a last-minute out-of-court settlement with Mozambique before the London trial, aiming to spare Credit Suisse from a courtroom battle.
In March, UBS was compelled to purchase its former subsidiary to prevent Credit Suisse from facing bankruptcy, following pressure from Swiss authorities. Now, UBS must settle the various cases that have plagued the bank.
This agreement between Credit Suisse and M壯陽藥 ozambique is deemed a significant milestone in the case, demonstrating that UBS is diligently handling Credit Suisse litigation and resolving it at a steady pace.
Notably, in October 2021, Credit Suisse faced penalties of $475 million in an agreement with US, UK, and Swiss authorities to conclude prosecutions related to loans to Mozambique, a central component of a sprawling corruption scandal.
In 2013, the bank had provided loans to state-owned entities for maritime surveillance, tuna fishing, and shipyard projects, but a portion of the funds was diverted for bribes. The government concealed the debt from parliament, with loans from several banks, including Credit Suisse, totaling approximately $2 billion.
When the scandal came to light in 2016, the IMF and World Bank suspended their financial support to Mozambique, and the country defaulted on its sovereign debt, leading to a currency collapse.
In the October 2021 agreement, Credit Suisse committed to canceling $200 million owed by Mozambique to the British authorities. However, the nation initiated legal action against shipbuilding firm Privinvest and Credit Suisse, among others.