Monday, April 4, 2016

Tuna and Gunships

Mozambique is becoming a case study on the perils of rushing into markets at the edge of the world’s financial system.Global investors who in 2013 thought they were lending a state-owned company $850 million to buy a tuna fishing fleet learned within months that the funds had been diverted to buy ships for the navy. Two years later, they were told Mozambique intended to restructure the bonds, because the fishing company’s revenue wasn’t holding up.Now, they are learning that Credit Suisse Group AG, which led the bond sale with a Russian bank, had made another sizable loan to Mozambique around the same time of the original bond sale. Read HERE.

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