Africa-Press – Mozambique. The UBS Group reached an out-of-court settlement with Mozambique on Sunday over the financing of the purchase of fishing boats by Credit Suisse, resolving the dispute on the eve of the hidden debts case going to trial in London.
The agreement also covers the remaining creditors, the Swiss group said in a statement without giving further details on the value of the agreement.
On Saturday, Bloomberg reported that the UBS Group was offering up to $100 million (around €94 million) to drop the case against the bank.
“The parties have released each other from any liabilities and claims related to the transactions,” said the bank, which was bought in June by the group.
Mozambique’s Ministry of Economy and Finance announced a joint press conference with the Attorney General’s Office on Monday, during which it will comment on the state’s action in London against Credit Suisse.
Following this agreement, the start of the trial in British court on Monday in London is also uncertain due to the appeal admitted by the court on the immunity of President Filipe Nyusi.
The Republic of Mozambique claims that the guarantees given for bank loans for the purchase of maritime security vessels, tuna fishing boats and other equipment should not be considered valid because they were obtained through the corruption of senior state officials.
The loans were endorsed by the government of the Front for the Liberation of Mozambique (Frelimo) when Armando Guebuza was still head of state, without the knowledge of parliament or the Administrative Tribunal.
Mozambique wants to cancel the millions of dollars owed to Credit Suisse and obtain financial compensation for the macro-financial damage caused.
Former President of Mozambique, Armando Guebuza, his eldest son Armando Ndambi Guebuza, former Mozambican Finance Minister Manuel Chang, former SISE Director of Economic Intelligence António Carlos do Rosário and former Director of the State Information and Security Services (SISE) Gregório Leão are also defendants in the case.
The case, uncovered in 2016 and known as “hidden debts”, involves contracts and loans totalling more than $2.7 billion (€2.5 billion), according to the Mozambican Public Prosecutor’s Office, with banks Credit Suisse and VTB, between 2013 and 2014.
The scandal led to the suspension of international support, including from the International Monetary Fund (IMF), which only resumed financial aid to the country years later.
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