Mozambique central bank signs agreements to reach rural areas

10 November 2009

Maputo, Mozambique, 10 Nov – The Bank of Mozambique has signed a greements with some retail banks and micro-credit operators to raise 11.4 million meticals (US$413,000) for its expansion projects, according to press reports.

The O Pais newspaper reported that Mozambique’s central bank had signed agreements with Banco Comercial e de Investimentos, the Office for Support to Small Investments (GAPI), the Foundation for the Development of Women (FDM) and savings bank Caixa de Poupanca Postal de Moçambique.

The director of the Department of Banking Oversight in Mozambique’s central bank, Umaia Mahomed, said 80 percent of the requested 11.4 million meticals will be disbursed shortly. Of the total amount solicited by financial institutions, some 68 percent will be used to expand the central bank in rural areas, added Mahomed.

Around 16 percent of the funds will be invested in technologies for the adoption of international financial reporting standards and the remaining 16 percent will finance the process of integrating these banks into the national payments system.

Gerd Juntermanns, representing KRW, the body financing the projects on behalf of the German Development Bank, said the level of implementation of the initiative was satisfactory and there were studies underway that could result in investments of over €1 million in the coming months. (macauhub)