Europe > Eastern Europe > Russia > Mozambique: Manuel Chang Signed Loan Guarantees

Russia: Mozambique: Manuel Chang Signed Loan Guarantees

2016/10/19

Guarantees for $2 billion secret loans were signed by the again Finance Minister Manuel Chang, according to @Verdade (11, 12 Oct) which published pages from the agreements. The guarantees were in 2013 to Credit Suisse and in 2014 to the Russian national-owned bank VTB.

One of the clauses in these guarantees states that “the guarantor [the Mozambican national] is complying in all aspects with its obligations to the IMF and the World Bank”.

This was manifestly false, and the IMF cut off its loan to Mozambique precisely because it was not informed about the loans. A further clause in the guarantees states that the provision of the guarantees was in accordance with Mozambican law and that the Ministry of Finance had been authorized to sign the guarantees, which was not authentic because parliament had to approve the loan guarantees and had not done so. A third clause said that the deficit payments were included in the national budget, which was as well not authentic.

VTB says government deceived it

“The government deceived us” by not disclosing the debts with national guarantees contracted by various public companies in 2012 and 2014, said Yuri Soloviev, chief of VTB Capital and initial deputy chief executive officer of VTB Group, because the national-guaranteed debts of several public companies were not disclosed to investors and the International Monetary Fund (IMF) by the government of Mozambique. Soloviev said that VTB was no longer the holder of the deficit, but accepts that it is are responsible as agents for the loans. Soloviev as well said that he did not know if the Mozambique government would be able to make the $38 mn interest payment due 18 January.

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