12 °c
London
Wednesday, June 29, 2022
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

Credit Suisse escapes UK criminal charges over Mozambique’s debt

Ronald Kasoka by Ronald Kasoka
November 14, 2018
in Africa, Banking, Economy, Finance, Mozambique
Reading Time: 2 mins read
1.9k 39
2
Credit Suisse to lend Tanzania US$200M for projects
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

According to an article published on the Financial Times last Sunday Credit Suisse has escaped criminal charges by the UK’s Financial Conduct Authority (FCA) over the US$2B+ “tuna bond” scandal in Mozambique. The loans where contracted to set up a state-owned tuna fishing fleet (US$850M) and to establish a maritime radar surveillance and a fleet of patrol boats (US$1.2B).

The FCA decided to downgrade the case from money-laundering to a regulatory investigation, according to sources familiar with the matter. According to U.S Securities and Exchange Commission, the other main banks which were involved in the sale and the facilitation of the Tuna Bond were BNP Paribas and VTB Bank.

The progress of the tuna bond was relatively successful after Mozambique managed to reach an agreement with bondholders on the defaulted US$726M bond. The Ministry of Economy and Finance issued a fresh debt from the previous debt and committed to pay using the revenue from offshore natural-gas projects.

The country has been fighting to recover from a debt crisis since acknowledging in 2016 to the undisclosed debt. The admission by the government triggered the International Monetary Fund and Foreign Aid providers to halt budgetary support. At the time, the loans and aid provided by IMF financed about a quarter of the country’s budget. As a result, Mozambique faced fiscal challenges leading to a sharp fall in its currency and a significant reduction in its foreign reserves.

The FCA has decided to focus its investigation on both the bank and individuals involved in the tuna-bond scandal. Rather than facing potential jail time, they can now face a harsh fine or a ban at worst. However, the US Department of Justice has a criminal investigation open into the matter as it is probing all three banks, Credit Suisse, VTB and BNP Paribas for their participation in the matter. Furthermore, the US Securities and Exchange Commission is running a parallel regulatory probe as well as the Swiss Authorities. The FCA in 2018 stated that it had 75 cases of money-laundering open on both companies and individuals many of which had both a criminal and regulatory element.

On November 6th, the Ministry of Economy and Finance of Mozambique issued a communique stated that the government and bondholders have agreed to work in good faith with their respective advisers to reach an agreement on mutually acceptable terms.

Related

Tags: BNP ParibasCredit SuisseDOJEMATUMFCAFeatureFinancial Conduct Authorityhidden debtIMFMAMMinistry of Economy and Finance of Mozambiquemoney launderingMozambiqueMozambique Asset ManagementProIndicusRonald Kasokasovereign debtSwiss authoritiesTunabondUS Department of JusticeVTBмозамбикموزمبيقモザンビーク莫桑比克
ScanSendShare774Tweet484Share135Pin174Send
Ronald Kasoka

Ronald Kasoka

Related Posts

Business

Qatar investors acquire Rwanda Umubano hotel

by Taarifa Rwanda
June 29, 2022
Angola Capital Markets Commission analyses privatisations through stock exchange
Finance

Nairobi Stock Exchange Africa’s 3rd poorest performer

by The Exchange
June 29, 2022
FurtherAfrica join forces to promote ATIGS Dubai 2020
Business

Theorems Groups – Sarko Partners join forces to enter SADC

by Elizabeth Khumalo
June 29, 2022
Banks using US$ should think about their Crypto exposure – FinCEN Director
Finance

Cryptocurrency offers hope for Africa’s economic resurgence

by Web3Africa
June 29, 2022
The tripartite network theory in the gold mining industry: a lesson for Africa
Commodities

Ethiopia’s gold export generated US$513.9M in 11-month

by FurtherAfrica
June 29, 2022
Angola Oil & Gas 2022
 
AFSIC 2022
 
Great Limpopo Transfrontier Park
 
MozParks

Translate this page

Read the Latest

Business

Qatar investors acquire Rwanda Umubano hotel

by Taarifa Rwanda
June 29, 2022
0

Rwanda has handed over the former Umubano hotel to Kasada, a leading independent investment platform dedicated to hospitality investments in...

Read more
Angola Capital Markets Commission analyses privatisations through stock exchange

Nairobi Stock Exchange Africa’s 3rd poorest performer

June 29, 2022
FurtherAfrica join forces to promote ATIGS Dubai 2020

Theorems Groups – Sarko Partners join forces to enter SADC

June 29, 2022
Banks using US$ should think about their Crypto exposure – FinCEN Director

Cryptocurrency offers hope for Africa’s economic resurgence

June 29, 2022
The tripartite network theory in the gold mining industry: a lesson for Africa

Ethiopia’s gold export generated US$513.9M in 11-month

June 29, 2022

FurtherAfrica Partners Network

The Exchange Club of Mozambique Taarifa Rwanda
TechGist Africa Africa Oil & Power Farmers Review Africa
Tanzania Invest Zambia Invest See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
Digilogic Africa Web3Africa

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 73,051 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
 

Loading Comments...