africa Banking Economy Finance Government Mozambique

Credit Suisse fields Swiss inquiries over Mozambique’s Tuna bonds

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An investigative report into the use of a loan to Mozambique has brought Credit Suisse back into the headlines. The case has drawn the attention of Switzerland’s financial market regulator.

The report by U.S. investigating company Kroll has not gone unnoticed: the inquiry into a loan worth $2 billion to three state-owned firms in Mozambique concluded that Credit Suisse (CS) and Russia’s VTB Bank, which together had organized the loan, had received $200 million in fees. Credit Suisse rejected this finding of the investigating company.

Swiss financial market regulator Finma is in contact with Switzerland’s second-largest bank, a spokesperson for the Bern-based authority told the «New York Times».

Tuna Fish and Patrol Boats

Finma had contacted the bank already last year, when the story about the loans to the African nation first caught the headlines.

The loans to Mozambique were intended for the acquisition of a tuna fishing fleet, patrol boats, further nautical equipment, maintenance and training. After receiving the money, Mozambique is said to have altered the purpose for part of the loans, making them available for purpose of the country’s military.

Keen International Interest

Kroll concluded that it was unclear for what some $500 million of the tuna fish loans had been used for.

The fact that the «New York Times» has taken contact with an authority in Bern shows the level of international interest into the affaire. The U.S. newspaper together with «The Wall Street Journal» and «Bloomberg» have shown a keen interest in shedding light on the deal.

Source: Finews


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