Russia’s VTB Sues Mozambique Over ‘Tuna Bond’ Scandal

Russia’s VTB Capital has sued Mozambique to recover its share of defaulted debts at the heart of the impoverished African nation’s $2bn “tuna bond” scandal, the Financial Times reported. State-owned VTB is demanding repayment of a $535m loan, according to a lawsuit that it filed against the Mozambican government in London. In 2013 and 2014 Mozambique borrowed $1.4bn from VTB and Credit Suisse tied to maritime security projects, alongside a $850m bond it sold to investors for the financing of a tuna-fishing fleet. The debts led to a severe financial crisis for one of the world’s poorest nations after the maritime projects collapsed and $200m raised from the loans was looted for bribes, US prosecutors have alleged. Read more