Home Mozambique Credit Suisse fined $ 475 million, cancels $ 200 million in hidden...

Credit Suisse fined $ 475 million, cancels $ 200 million in hidden debt

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US authorities and the UK’s Financial Conduct Authority have collectively fined Credit Suisse $ 475 million for its role in Mozambique’s hidden debt scandal. Credit Suisse has also agreed to write off $ 200 million in debts owed to them on the transactions, which are in default, in exchange for a lower fine. FCA says a total of $ 390 million is still owed to Credit Suisse[1]So there is $ 190 million left that the bank is still trying to get Mozambique to pay.

The other bank involved in the loans, VTB Capital, was fined just $ 6 million from the United States Securities and Exchange Commission. A report from the Center for Public Integrity and CMI found that the scandal may have already cost Mozambique $ 11 billion and could cost another $ 4 billion..

Reacting to the announcement, Denise Namburete, Executive Director of N’weti, an organization working for better health for the people of Mozambique, said:

“The Mozambican people have suffered from the actions of Credit Suisse and must therefore receive the proceeds of the fines. But $ 475 million is a drop in the ocean compared to the damage hidden debts have inflicted on Mozambique. The Mozambican people had no say and received no benefit from the loans. We welcome the $ 200 million cancellation of the $ 2 billion debt, but all the hidden debts must be canceled. We need justice for the Mozambican people.

Tim Jones, UK Policy Officer for Jubilee Debt Campaign, said:

“A fine of $ 475 million is a small beer for a bank as big as Credit Suisse, while the fact that it hardly takes any action against VTB is disconcerting. These fines do little to prevent a similar case from happening again. We urgently need new rules in the UK and US to make details of all government loans available to the public. ”

No announcement made it clear whether the $ 200 million in canceled debt matched all of the debt now owed to Credit Suisse. We know that a large part of the $ 2 billion debt was sold to other speculators.


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