The Oxford Economics Africa consultancy considered that Credit Suisse's pardon of 200 million dollars of Mozambique's debt, within the scope of the hidden debts, is positive, but insufficient to put the debt on a sustainable trajectory.

"Although the Credit Suisse agreement to forgive some of the debt is positive for Mozambique, $200 million is clearly not enough to put the country's debt on a sustainable trajectory," warn the analysts cited by the Lusa news agency.

In a commentary sent to clients regarding the settlement reached between Swiss bank Credit Suisse and various international judicial bodies, Oxford Economics Africa believes that "the Mozambican government must restore its reputation among international donors and investors to attract the aid and investment needed to lift the country out of the severe poverty it faces."

In the text, the analysts recall that "the secret loans were approved based on the assumption that the state would earn billions of dollars in liquefied natural gas production," whose projects have been delayed due to violence in the north of the country, precisely the region with the greatest concentration of these natural resources.

"Considering that violent extremism in the region is fueled by poverty and frustration with corruption in government, it is crucial that the justice system, in Mozambique and abroad, bring all guilty parties to justice," the analysts conclude.

The bank Credit Suisse, which together with the Russian bank VTB arranged more than $2 billion in loans to the public companies Proindicus and Mozambique Asset Management (MAM), has agreed to forgive $200 million in a settlement with various judicial entities in the United States, the United Kingdom, and Switzerland, to which it will pay $475 million.

The hidden debts are known to have been 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.

Source Lusa