VTB Bank’s London division VTB Capital will pay US $ 6.4 million for disinformation in the case of providing credit to Mozambique, reported Securities and Markets Commission (SEC). The company agreed to pay for the settlement of the claims without acknowledging or rejecting the regulator’s findings.
“According to the SEC resolution, the second placement (of bonds in 2016. – “B”), structured by VTB Capital and Credit Suisse, allowed investors to exchange their investments in an earlier placement of bonds for new sovereign securities issued directly by the authorities of Mozambique, ”the American regulator said. The amount paid by VTB Capital consists of $ 2.4 million in compensation and interest, as well as a $ 4 million fine.
In 2013 and 2014, Mozambique borrowed about $ 2 billion from banks Credit Suisse, VTB and BNP Paribas to buy shoreline protection systems and tuna fishing vessels. The funds were received by the state-owned companies Ematum and ProIndicus, as well as the state fund Mozambique Asset Management. The deal was led by Mozambique’s finance minister Manuel Chang. Later it became known that he withheld information about the loans and resigned in 2015.
In 2016, the International Monetary Fund learned about the debt of Mozambique. Then the country’s authorities announced a default.