Barclays Moçambique says it drops interest rates in line with those set by central bank

28 June 2013

Barclays Moçambique has been reducing the interest rates offered on some loans in lined with the basic interest rates set by the Bank of Mozambique, the bank’s treasury director, Alberto Pitoro said in Maputo.

Cited by the Mozambican press, Pitoro said that the drop in the interest rate on the permanent liquidity facility should not be seen as the only factor in the decision to reduce interest rates in the financial market, as there are other risk factors to take into consideration.

He also said that he understood that the Bank of Mozambique, by reducing its basic interest rates, was making room for retail banks to lower interest rates, but added that that did not necessarily happen to the same extent.

Pitoro was speaking at the Barclays 2nd Economic Forum, as part of the bank’s 10th anniversary in Mozambique, at which the Absa/Barclays senior economist, Riddle Markus, said that, in regional terms, Mozambique had the biggest balance of trade deficit, which totals 36 percent of gross domestic product (GDP).

Barclays has operated in Mozambique for 10 years and has a network of 43 branches and around 900 staff. (macauhub)