The Russian bank VTB said Wednesday in statements to Lusa that it still prefers to "amicably resolve" with Mozambique the dispute over 817.5 million dollars it claims from the state, relating to hidden debts, rather than wait for a court decision.

"VTB is sincere in its desire to resolve this dispute amicably," the bank's official source noted.

The statement comes after the bank agreed on Tuesday to pay six million dollars to the US Securities and Exchange Commission (SEC) in the face of accusations that it "misled investors" in an offering of securities linked to the hidden debts, "in violation of antifraud rules against negligence," the commission said.

In its analysis, VTB believes that the SEC's ruling rests on the fact that the bank disclosed "misleading statements made by Mozambique and omissions that VTB could not avoid," clearing it of liability for "acts of corruption that overshadowed the transactions."

Now it hopes that "the government of Mozambique will return to the table to negotiate the restructuring of the debt with VTB," the bank said.

"A restructuring by agreement remains the ultimate outcome of VTB's preference, but after years of discussions without tangible progress," the financial institution said it had to take the matter to court.

In May 2020, VTB filed a lawsuit in a London court demanding $817.5 million, plus interest, from the Mozambican state for defaulting on the MAM (Mozambique Asset Management) loan installments in 2014 under the hidden debts."

Without a settlement, there will be a trial, which "will begin in 2023 and will last three months," the bank said, according to the court schedule.

If so, "it is expected that evidence and proof will be presented from all parties involved, including testimony from official government representatives," he added.

The discovery of Mozambique's hidden debts in 2016 led to a financial crisis in the country that resulted in a series of lawsuits against Credit Suisse and the Russian bank VTB, launched by the Attorney General's Office, but the banks also put the country in the dock for non-payment, arguing that the destination and application of the borrowed funds was not their responsibility.

The hidden debts were incurred between 2013 and 2014 by the Mozambican state-owned companies Proindicus, Ematum and MAM for tuna fishing and maritime protection projects that never went ahead.

Lusa Agency