Maputo, Mozambique, 9 Sept – Portugal and Mozambique are to create an investment bank with starting capital of US$500 million, which will be based in Maputo and a branch in Lisbon.
The memorandum of understanding to create the bank, which is expected to start operating in the first quarter of 2010, was signed Tuesday in Maputo by the Finance ministers from the two countries, Manuel Chang for Mozambique and Teixeira dos Santos for Portugal.
Teixeira dos Santos’ one-day visit to Mozambique also served to sign an addendum to boost a credit line granted in 2008 to 200 million euros and a new financing deal for 300 million euros.
The new financing deal for 300 million euros is aimed at funding road, rail and port infrastructures, as well as social and technological facilities.
The bank will be funded equally by the National Treasury Directorate of Mozambique and by Portuguese state bank Caixa Geral de Depósitos (CGD), which already owns 50 percent of retail bank BCI in Mozambique.
The new bank may not only providing funding, but may also be involved in development projects.
It is “a fundamental initiative to create a framework here to support partnerships that we want to help set up between Portuguese and Mozambicans, in projects and investments that are vital for development of the Mozambican economy,” said Teixeira dos Santos.
Chang, who praised the growing cooperation between the two countries, said that he wanted to see the bank set up as “urgently as possible.” (macauhub)