This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXNPEBAG0BO_M.jpg
The settlement, announced on Sunday, resolved a case that began a decade ago when Credit Suisse first financed a new coastal patrol force and tuna fishing fleet for Mozambique. The African nation accused the Swiss bank of ignoring red flags and corruption within its own ranks in deals struck as part of $2 billion worth of bond deals.
While no details of the settlement have been released, sources familiar with the situation suggested last week that UBS was in talks to forgive as much as $100 million of Mozambique’s debt as part of the agreement.
Deputy Attorney General Angelo Vasco Matusse stated at a briefing in Maputo on Monday that the government cannot provide any more information due to the ongoing court proceedings.
The settlement came ahead of a civil trial scheduled to start in London’s High Court on Monday, marking an important milestone in resolving this long-standing dispute.
The scandal had previously plunged Mozambique into a deep crisis, leading to the suspension of financial support from the IMF and World Bank and causing the country to default on its sovereign debt.
UBS took over its former subsidiary Credit Suisse under pressure from Swiss authorities in March to prevent it from going bankrupt. It is currently addressing several issues that plagued the bank, including the litigation matters inherited from Credit Suisse.
In October 2021, Credit Suisse was fined $475 million following an agreement with US, British and Swiss authorities over loans in Mozambique at the heart of this corruption scandal. At that time, Credit Suisse had agreed with the British authorities to cancel $200 million owed by Mozambique.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
