The UBS Group has revealed that it is in talks with Mozambique, offering up to 100 million dollars for the Mozambican government to drop the case against the bank, which begins to be heard on Monday in London.
According to financial news agency Bloomberg, negotiations are close to reaching a successful conclusion, which would mean that the UBS Group, which bought Credit Suisse in June, would not have to face 13 weeks of scrutiny over a financing scandal known as the "hidden debts" affair.
A source quoted by Bloomberg, who did not want to be identified because the negotiations are not public, revealed that the parties are still negotiating the terms of the out-of-court settlement of up to 100 million dollars.
Meanwhile, another source added that Mozambique's Attorney General's Office (PGR), which accuses Credit Suisse of having ignored the problematic aspects of the actions of three bankers in financing the country, could disclose the agreement as early as next week.
Even if there is an out-of-court settlement that makes Mozambique withdraw the lawsuit against Credit Suisse, now transferred to the UBS Group for the acquisition of the Swiss bank, the trial will still be held, but with only billionaire Iskandar Safa, leader of Privinvest, as a defendant.
On Tuesday, October 3, the trial is scheduled to begin in the Commercial Court, part of the High Court in London (equivalent to the Supreme Court of Justice in Portugal) in the case initiated by the Mozambican Attorney General's Office against the bank Credit Suisse, three former employees and several companies in the Privinvest group.
The Mozambican government claims that the guarantees given for bank loans for the purchase of maritime security vessels, tuna fishing boats and other equipment should not be considered valid because they were allegedly obtained through the corruption of senior state officials.
The loans were endorsed secretly by the Frelimo government when Armando Guebuza was still head of state, without the knowledge of parliament and the Administrative Court.
Mozambique wants to cancel millions of dollars in debts owed to Credit Suisse and obtain financial compensation for the macro-financial damage caused.