Campaigners press Credit Suisse on Mozambique

The Mozambique government has said it will not make a $60 million interest payment due on 18 January On 17 January, campaigners from the Jubilee Debt Campaign handed in a call from 900 people for Credit Suisse to “come clean” about its facilitation of secret loans to Mozambique. The campaign group is supporting calls by …

Mozambique’s secret loans: Protecting the unconstitutional

A Mozambican parliamentary Commission on 7 December submitted a devastating report on the $2 billion in secret loans originally given or arranged by the London branches of Credit Suisse and VTB to three companies in Mozambique: Ematum, Proindicus and MAM. The Commission finds that the government guarantee to repay the loans was not just illegal, …

Mozambique debt is unpayable and the UK needs to act

Reacting to reports that the government of Mozambique has announced that it cannot pay its private external debt, Sarah-Jayne Clifton, Director of the Jubilee Debt Campaign, said: “Mozambique’s unpayable debt is the result of reckless lending and borrowing and the crash in the price of commodities. It is immoral for those who lent the money …

Mozambique’s secret loans: A scandal that started in London

Tuna fishing ships and military patrol boats are currently sitting dormant, docked in the capital of Mozambique, Maputo. Together, these boats provide a daily physical reminder of the ongoing political scandal that has rocked this south-east African country and contributed to a major economic crisis. But the story begins in the offices of two banks in London, …

Tell Credit Suisse and VTB to drop the debts claimed from Mozambique

In 2013 Credit Suisse and VTB lent $1.1 billion to two publicly-owned companies in Mozambique from their offices in London. Details of the loans were not made public, and they were never approved by Mozambique’s parliament – in direct contravention of the country’s constitution. Civil society groups in Mozambique have condemned the loans as ‘illegal’, …

Campaigners in Mozambique call for non-payment of hidden debts

A group of 26 organisations in Mozambique have asserted that the $1.86 billion of the country’s debts at the centre of a growing international controversy were contracted illegally and should not be paid. The campaigners make the claim about three state backed debts owed by MAM ($535 million), ProIndicus ($597 million) and Ematum ($726.5 million). …

Campaigners criticise Credit Suisse for helping to hide Mozambique loan

Over recent days it has come to light that Credit Suisse and VTB lent around $1.35 billion to Mozambique, but the government and the lenders hid this from any public oversight. The revelations have led the IMF to suspend bailout loans which were helping Mozambique pay its debt to external lenders. Credit Suisse is holding …

Mozambique proposes ‘tuna’ bond restructuring

Proposed terms will cut debt but increase interest rate, leaving Mozambique no better off, despite crash in commodity prices reducing ability to pay Mozambique is trying to restructure the terms of a bond it issued in 2013 to borrow $850 million, at 6.305% interest rate.* At the time the money was borrowed, it was said …

We still need a debt jubilee: 20 years on from the Birmingham human chain

Twenty years ago today, as a wide-eyed 16 year old, I went on my first ever protest. Travelling to Birmingham with a group from my church, we joined 70,000 others to surround the G8 summit, demanding debt cancellation for 52 impoverished countries by the year 2000. Many countries had been trapped in debt for the …