The implications for the Geneva financial centre

Resource-backed loans place particular responsibilities on Geneva’s traders, banks and advisers.

For traders, structuring these loans requires a thorough analysis of the country’s governance, of the national company’s capacity to deliver, of the conditions under which the contract was awarded and of the risks of corruption. It also requires reflection on the sustainability of the commitment for the country, whose default would harm the trader itself, as the Chadian and Congolese restructurings have shown. Transparency commitments, such as those undertaken by Glencore and Trafigura within the framework of the Transparency Initiative, reduce reputational risks.

For the banks that take part in these financings, the same requirements apply, to which are added anti-money laundering obligations and vigilance towards the politically exposed persons who run the national companies. A bank that finances a resource-backed loan whose terms were obtained through corruption exposes itself to the same risks as the trader.

For lawyers and advisers, drafting the contracts, structuring the security and advising the parties — traders, banks and sometimes borrowing states — engages their professional liability. The revision of the Anti-Money Laundering Act adopted in 2025, described in Part E, extends their due diligence obligations to some of these activities.

The Geneva financial centre, which brings together the traders, banks, lawyers and international institutions concerned, is uniquely placed to promote standards for responsible resource-backed lending: transparency of terms, sustainability analysis, adjustment clauses in the event of a fall in prices, allocation of funds to investment. Such standards would set the Geneva players apart from their competitors and would answer the criticisms that the Natural Resource Governance Institute and others level at the sector.

Caution. Resource-backed loans make Geneva traders creditors of fragile African states for amounts that run into billions. Structuring them requires an analysis of governance, of the conditions of award, of sustainability for the country and of the risks of corruption. It engages the liability of traders, banks and advisers.

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of September 2025.

English

Contact

Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

Get in touch →

The implications for the Geneva financial centre

Setting up or expanding in Switzerland?