Home Finance News Credit Suisse and Mozambique Reach Out-of-Court Settlement for ‘Tuna Bond’

Credit Suisse and Mozambique Reach Out-of-Court Settlement for ‘Tuna Bond’

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Credit Suisse and Mozambique Reach Out-of-Court Settlement for ‘Tuna Bond’

Credit Suisse has reached a last-minute settlement with Mozambique regarding the decade-old “tuna bond” scandal. The Swiss bank’s new owner, UBS, confirmed the resolution, putting an end to a damaging dispute inherited from Credit Suisse. Details of the settlement were not disclosed, but it is reported that UBS will forgive a portion of a loan made by Credit Suisse, amounting to less than $100 million. The settlement also involved most of the creditors linked to a loan provided to state-owned Mozambican company ProIndicus in 2013.

The “tuna bond” scandal originated from three deals between Mozambican state-owned companies and Privinvest, a shipbuilder. Credit Suisse provided loans and bonds to finance the deals, which were backed by undisclosed government guarantees from Mozambique. Mozambique sought to revoke a sovereign guarantee on one of the loans, alleging corruption, and sought compensation for other wrongdoings. UBS, having taken on Credit Suisse’s legal troubles, has shown a commitment to resolving legacy disputes. The settlement leaves Privinvest and its owner, Iskandar Safa, as the primary defendants in an ongoing High Court battle.

The agreement between Credit Suisse, UBS, and Mozambique brings an end to the lengthy legal dispute over the “tuna bond” scandal. UBS, which acquired Credit Suisse, has dedicated significant financial resources to address legal issues inherited from the merger. The settlement involves UBS forgiving part of a loan made by Credit Suisse to Mozambique, along with the majority of creditors involved in the funding of the ProIndicus loan. The resolution comes right before a scheduled three-month civil trial in London was set to begin. The remaining defendants in the case are Iskandar Safa and his company, Privinvest, as they face continued legal battles over their role in the funding and shipping deals.

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