Mozambique proposes paying secret debts in a decade

Hints that if creditors do not agree, legality of the debt may become an issue Bondholders reject proposal, but no creditor has taken legal action on defaulted debts In a meeting with private creditors in London on 20 March, Mozambique presented an initial debt restructuring offer. Mozambique, or the state owned companies who owe the …

100 UK MPs criticise Mozambique secret lenders ahead of debt talks in London

100 MPs sign motion which expresses concern about secret loans and calls for new transparency measures Mozambique government meeting creditors in London on 20 March On 20 March the Mozambique government will meet private creditors in London to discuss debt restructuring proposals. Mozambique began defaulting on the $2 billion debts in 2016, most of which …

Mozambique: Secret loans and unjust debts

Secret loans to the Mozambique government have come at heavy price for the country’s people. Mozambique’s independence from colonialism was marred by a horrific civil war, where white Rhodesia, then apartheid South Africa, supported rebels to undermine the Mozambique government. Following the war, the country had a large debt, and some social conditions actually worsened …

Guide to responding to MPs about odious loans to Mozambique

Thank you for writing to your MP about odious loans by UK banks to Mozambique. If you have not done so yet, please take action now. In 2013, two London- based banks lent $2 billion to three state-owned companies in Mozambique. The loans were given in secret, bypassing the Mozambique parliament. An independent audit has …

Liam Fox visits Mozambique: Calls for UK to take responsibility for role in debt crisis

The UK Secretary of State for International Trade Liam Fox is visiting Mozambique this week. The country is in a debt crisis after Mozambican officials borrowed $2 billion from the branches of two London based banks, Credit Suisse and VTB Capital, in 2013. Much of the loans were kept hidden until 2016, none were agreed …

Release of audit raises huge questions over $2 billion loans to Mozambique

A condition of Credit Suisse to get the loans signed off by the Bank of Mozambique was dropped in order for the loans to be given Credit Suisse and VTB gave or arranged loans to three companies which had no revenue, and without the contracts in place to suggest that they would generate revenue in …

No bailout for Mozambique’s secret lenders

Mozambique is in a stand-off with its creditors over $1.1 billion of secret debts revealed last year. But now campaigners in Mozambique fear the IMF will give the country new loans before those responsible for the scandal have been held to account. Please tell the UK government not to support a bailout for Mozambique’s secret …