Bank of Mozambique calls for banks to manage credit prudently

12 July 2010

Maputo, Mozambique, 12 July – The Bank of Mozambique has been calling for retail banks to adopt prudent management in order to minimise cases of loan defaulting, Mozambican daily Notícias reported, citing an executive of the state bank.

Executive Waldemar de Sousa said that in 2009 credit expanded by around 60 percent and that at the end of March, despite growth being lower, resources provided by the banks to economic agents and individuals still posted a high rate of growth, of 50.6 percent.

“The rate of default on loans remains at 1.8 percent, which is the same as the rate in December 2009, but, even so, we have been careful to call on retail banks to manage credit prudently,” he said.

At a press conference to summarise the financial and economic climate in the first quarter of 2010, the Bank of Mozambique executive said that retail was the most indebted sector.

“However the individual sector emerges immediately behind it, which means consumer and housing loans that individuals and families have been receiving from retail banks operating in the Mozambican financial system,” he said.

The executive also said that loans taken on in the international market by companies resident in the Mozambican economy was estimated at some 30 million meticals (just over US$1 million). (macauhub)