Mozambique to Pay $220 Million Debt to End 'Tuna Bond' Saga.

Mozambique has agreed to pay $220 million to creditors, including VTB Capital and Banco Comercial Português, in order to settle a decade-old debt scandal known as the "tuna bond" saga. The lenders' claims had grown to $1.4 billion due to accruing interest. This settlement, along with previous ones, has removed $2.3 billion in loans from state accounts. The debt was part of a $2 billion coastal project that was marred by bribery and corruption, leading to court cases and the imprisonment of the son of the former Mozambican president. The settlement will help resolve potential claims from lenders and allow Mozambique to move forward with its governance agenda and fiscal reforms. However, the government is still awaiting judgment in a case against Privinvest, the company that supplied the equipment for the project. Mozambique's former Finance Minister, Manuel Chang, is also awaiting trial in New York for his alleged involvement in the scandal. The scandal had a significant impact on Mozambique's economy, which was already struggling as one of the world's poorest countries. [Extracted from the article]

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