USAID signs agreement to guarantee credit with Mozambique’s Banco Terra bank

4 November 2011

Maputo, Mozambique, 4 Nov – The United States Agency for International Development (USAID) has an agreement to guarantee credit of US$9.1 million, with Mozambican bank Banco Terra, according to Mozambican newspaper O País.

This new agreement increased the total amount guaranteed by USAID to Mozambique’s financial institutions to support the expansion of credit, which is intended to solve financing problems, increase agricultural productivity and diversify the rural economy.

Under the terms of the credit guarantee, which has a lifetime of seven years, US organisation Abt Associates, via its agri-business competitiveness programme – AgriFuturo, and Banco Terra signed a memorandum of understanding to support borrowers in putting together solid development plans for their companies.

The newspaper added that Banco Terra had agreed to sign a similar memorandum with a future partner of USAID-Moçambique for tourism. (macauhub)