UBS Settles CS’s Billions-Dollar Dispute Over Tuna Bonds
Published: Sunday, Oct 1st 2023, 12:13
Updated At: Friday, Oct 13th 2023, 14:12
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The UBS, a large bank, has settled an open billion-dollar legal dispute between its subsidiary Credit Suisse and Mozambique. The CS reached an out-of-court agreement with the East African state regarding the scandal of tuna bonds worth over 1.5 billion dollars. This was announced by the UBS, the new owner of the CS, on Sunday. The Swiss bank thus drew a line under the long-standing dispute, which it inherited from the CS alongside other scandals. On Monday, a civil trial for damages claims in the case was due to begin in London. The settlement includes the CS and the state of Mozambique, as well as most of the other lenders in the case. The parties have "released each other from all liabilities and claims in connection with these transactions," the bank said. No details were given. The proceedings concerned loans and bonds to Mozambique mediated by the CS a decade ago, without the knowledge of the local parliament and the International Monetary Fund (IMF). The money was to be used to pay for the construction of a tuna fishing fleet, with large bribes flowing to corrupt officials. The scandal plunged Mozambique into a deep financial crisis.
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