Credit Suisse has reached a last-minute settlement with Mozambique over the “tuna bond” scandal, according to UBS, the Swiss bank’s new owner. The settlement brings an end to a damaging dispute inherited by UBS and resolves the long-running dispute that dates back a decade. The terms of the deal were not disclosed one day before a three-month civil trial was scheduled to begin in London. The tuna bond case involved three deals between Mozambican state-owned companies and shipbuilder Privinvest, funded in part by loans and bonds from Credit Suisse.
The settlement between Credit Suisse and Mozambique has put an end to a contentious legal battle that has been ongoing for years. The agreement comes just in time before a civil trial was set to begin in London, avoiding further damage to Credit Suisse’s reputation. The “tuna bond” scandal involved Mozambique seeking to revoke a sovereign guarantee on a loan it claimed was corruptly obtained and seeking compensation for other alleged wrongdoing. Both parties are pleased to have resolved the dispute and have mutually released each other from any liabilities and claims relating to the transactions.
UBS, which acquired and rescued Credit Suisse earlier this year, has a financial buffer of up to $10 billion for litigation, according to analysts. The settlement provides a fresh start for both Credit Suisse and Mozambique, putting an end to a decade-long dispute. The terms of the agreement were not disclosed, leaving the exact details of the settlement unknown. This settlement is a positive development for both parties involved and allows them to move forward and focus on their respective priorities.