Mozambique Suing Credit Suisse and Privinvest

Credit Suisse and Privinvest will be sued by Mozambique in the High Court in London, according to a notice on intent submitted on 28 February by the attorney general's office (Procuradoria-Geral da Republica, PRG). The notice relates to the government guarantees supposedly given on the $2 bn secret debt.

Details of the notice are not yet public, but it seems to have been written and submitted quickly, probably in order to make it public before the IMF staff mission arrives on 13 March. This legal action is enough to allow the $2 bn secret debt to be considered "disputed" by the IMF. As we explained last week (bit.ly/Moz-439) that means it can be removed from the IMF debt sustainability analysis, which would mean that Mozambique's debt can now be considered sustainable, which would permit an IMF programme and could release additional aid and credits. The first step would be to agree a "staff monitored programme", perhaps during the mission. This does not involve IMF executive board approval or any IMF money, but a full IMF programme could follow.

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