Mozambique’s banks reduce retail interest rates

31 July 2013

The interest rates charged by financial institutions operating in Mozambique to their customers have fallen by over three percentage points between May 2012 and teh same month of 2013, according to an official document from the Bank of Mozambique.

In its latest report on the Economic Climate and Inflation Outlook, the central bank said that nominal interest rates applied by credit institutions to 12-month loans stood at an average of 19.53 percent in May of this year, compared to 22.54 percent in May 2012.

The average interest rate on liability operations, that is the rate paid on customer deposits, stood at around 10.18 percent, which was a drop of 0.04 percentage points against the rate in February 2013 and 2.68 percent against the May 2012.

Presenting the report, the Bank of Mozambique spokesman, Waldemar de Sousa, said that foreign reserves totalled US$2.3 billion, which was the equivalent of 5.3 months of imports.

Preliminary figures from the National Statistics Institute (INE), for the first quarter, included in this report from the central bank showed that Gross Domestic Product rose by 4.8 percent, which was a slowdown of 1.1 percentage points against growth posted in the first quarter of 2012. (macauhub)