Mozambican government plans to allow individuals to buy sovereign debt

25 April 2013

The Mozambican finance ministry is due to approve capital markets laws to allow individuals to buy Treasury Bonds, and short term public debt, the Finance Minister, Manuel Chang said in Maputo.

The minister added that one of the new laws was Decree 5/2013, of 22 March, which sets out the legal framework of Treasury Bonds and establishes Operators Specialised in Treasury Bonds (OEOT).

During the ceremony to grant OEOT certification to 14 of the main retail banks in Mozambique, Chang noted that these measures would start to have an impact in the short term, as a result of the Internal Debt Plan for 2013, which was recently approved by the government and outlines issuing Treasury Bonds worth 3.5 billion meticals (US$112.7 million).

“The issue will be carried out in four phases, the first of which will be at the end of April in the amount of around 500 million meticals,” the minister said, according to daily newspaper Notícias.

The deputy governor of the Bank of Mozambique, António Pinto de Abreu, said that the new law was intended to expand the Treasury Bond sub-sector and added that the aim was not to stop banks being banks, “but rather to be involved in intermediation for Treasury Bonds in competition with other eligible operators.”

Institutions that are certified to operate as OEOTs are the African Banking Corporation (Mozambique), Banco Comercial e de Investimentos, Banco Internacional de Moçambique, Banco Mercantil de Investimentos, Banco Nacional de Investimentos, Banco Procredit, Banco Terra, Barclays Bank, BPI Dealers, Cooperativa de Poupança e Crédito, FNB, Moza Banco, Standard Bank and United Bank for Africa. (macauhub)