Mozambique to Pay $220 Million Debt to End ‘Tuna Bond’ Saga
- Settlement ends potential $1.4 billion in claims from VTB, BCP
- Scandal dates back 10 years as nation prepared for gas riches
Fishermen tend to their boats on the shores of the Paquitequete neighborhood in Pemba, Mozambique.
Photographer: Alfredo Zuniga/AFP/Getty ImagesThis article is for subscribers only.
Mozambique agreed to pay creditors including VTB Capital Plc and Banco Comercial Português S.A. $220 million in a settlement that formed part of the nation’s decade-old tuna bond scandal that ended in default.
The claims from the lenders had grown to $1.4 billion as interest continued to accrue, the Finance Ministry and attorney general said in a joint statement Monday. The deal follows similar ones with a group of creditors including UBS Group AG’s Credit Suisse last year. The settlements have removed $2.3 billion in loans from state accounts, according to the statement.