Settlement Agreed Between Credit Suisse and Mozambique on Tuna Bonds Dispute
In a significant development, UBS, the Swiss banking giant that acquired Credit Suisse earlier this year, has announced a settlement in the long-running 'tuna bonds' scandal involving Mozambique. The settlement was reached just ahead of a civil trial in London.
The project, which was funded by loans and bonds partially funded by Credit Suisse in 2013 and 2014, fell into default over allegations of hundreds of millions of dollars being looted. Mozambique had sought $1.5 billion in damages in connection with the scandal.
However, no new information about the damages sought by Mozambique or the lawsuit against Privinvest, the shipbuilding firm Mozambique partnered with, was provided in this settlement announcement. It's worth noting that Mozambique is still suing Privinvest, alleging $136 million in bribes.
The statement was made by UBS in response to a report by Bloomberg and Reuters. UBS will not pay any cash under the settlement. Instead, the bank will forgive part of a loan Credit Suisse made to Mozambique in 2013, representing less than $100 million.
The parties have mutually released each other from any liabilities and claims relating to the transactions. This settlement marks a significant step towards resolving the controversial issue that has been a source of contention for several years.
Trading in UBS shares was halted temporarily after they fell nearly 8% in response to the Bloomberg report. The UBS spokesperson declined to comment further to the wire service.
It's important to note that UBS and Credit Suisse have significantly and proactively reduced their Russia-related exposure. However, there have been no confirmations about an alleged Justice Department investigation into alleged compliance failures at the bank and its acquiree, Credit Suisse.
As of 2025, Mozambique's payment claims against Privinvest related to the 'Tuna Bonds' scandal are subject to ongoing legal disputes and arbitration proceedings, with Privinvest denying liability and Mozambique seeking compensation for the hidden debts scandal that severely impacted its economy.
This settlement does not provide any new information about the ongoing legal disputes between Mozambique and Privinvest. The alleged investigation, if exists, may have focused on allowing some of its Russian clients to evade sanctions.
In conclusion, the settlement between UBS and Credit Suisse, and Mozambique marks a significant step towards resolving the 'tuna bonds' scandal. However, the ongoing legal disputes between Mozambique and Privinvest, as well as any potential investigations into compliance failures, remain unresolved.
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