Bank of Mozambique prepares credit centre

1 December 2011

Maputo, Mozambique, 1 Dec – The Bank of Mozambique is developing a credit centre that will bring together all the financial institutions involved in credit activities, the Minister for Industry and Trade, Armando Inroga said Wednesday in Maputo.

On the sidelines of the presentation of a study on the Business Climate Index carried out by consultancy KPMG Moçambique, the minister noted that the aim of creating the centre was to reduce credit risk and in that way, “reduce interest rates.”

“We believe that reducing interest rates will drive commercial credit which, at the moment, is being driven by a policy to create and encourage micro-finance institutions for rural areas,” said Inroga, cited by Mozambican newspaper Notícias.

The minister added that within the scope of micro-finance institutions, the government, via the Fund for Support for Economic Rehabilitation (FARE) and other partners, has funded retail banks and micro-finance institutions to carry out micro-financing activities.

In its turn, KPMG Moçambique said that the Business Climate Index in 2011 stood at 102.21 percent, which represented a rise of 0.71 percentage points (pp) resulting from growth of 2.21 percent against 2005, which is considered to be the base year for calculating the indexes. (macauhub)