The Strategist

UBS and Mozambique to settle claims in Tuna Bonds case

10/03/2023 - 09:38

UBS Group AG and the government of Mozambique came to an agreement to resolve the country's complaints about Credit Suisse's involvement in the scandal around financing of the purchase of tuna fishing vessels.

F Mira
F Mira
The sides reached the arrangement immediately before the trial started on October 2 in London, the Financial Times writes.

According to UBS, Mozambique and Credit Suisse "mutually released each other from all liabilities and claims" connected to the matter.

Thus, the parties ended the case that started ten years ago when Credit Suisse and a few other banks gave Mozambique about $ 2 billion for projects in which the nation was to create a fleet to catch tuna and a system of monitoring and protection of its coastline from piracy and illegal fishing.

It was later discovered that hundreds of millions of dollars had vanished from the monies that had been dispersed. The Mozambican government charged the lenders with ignoring indications of theft and wrongdoing.

The International Monetary Fund (IMF) and other foreign creditors ceased supporting Mozambique after learning that the local government had largely withheld facts regarding the state-guaranteed loans.

According to the FT, Mozambique asked for $1.5 billion in damages in court, including money to make up for economic losses brought on by the IMF's pullout.

The newspaper's sources claim that as per the terms of the deal, UBS would not make any payments to Mozambique.

In a statement, UBS, which completed the acquisition of Credit Suisse in June of this year, stated that the parties were "pleased to conclude this protracted dispute arising from events that occurred ten years ago."