Bank debt of Mozambique’s private sector rises in 1st quarter

6 July 2009

Maputo, Mozambique, 6 July – The level of debt owed by Mozambique’s private sector to the banking sector rose by US$168 million in the first quarter of this year, the Bank of Mozambique said in its analysis of prices and the economic climate.

According to the document from the central bank, cited by newspaper Notícias, the private sector’s debts to banks operating in Mozambique is now estimated at around US$1.852 billion.

The bank of Mozambique said that the expansion of private sector debt in the period had been due to both requests for loans in foreign currency – around US$52 million – and a rise in loans in local currency.

The bank also noted that the private sector’s debt levels had mainly been due to requests for credit by the retail sector (25.2 percent of total credit), industry (17.9 percent) and private activities (17.4 percent).

“The agricultural and tourism industry sectors in the first quarter posted a drop in loans of around 3.6 and 6 percentage points, respectively, against the same period of 2008,” the central bank said. (macauhub)