Over 90 pct of bank loans taken on in Mozambique have interest rates of over 15 pct

11 November 2013

More than 90 percent of loans taken on in Mozambique by individuals and companies have interest rates of 15 percent or more, and in some cases of over 25 percent, the Bank of Mozambique said recently.

The figures from the Bank of Mozambique for 2013 showed that 45 percent of loans had interest rates of between 15 and 20 percent and that just 8.4 percent of loans were being paid back at rates of less than 15 percent, according to information on the Mozambican central bank’s website.

The second biggest percentage of the loans – 35.4 percent – has rates of between 20 and 25 percent, and the remaining loans (11.2 percent) pay a rate of over 25 percent.

In October, the Bank of Mozambique, for the third time this year, lowered the permanent liquidity facility rate to 8.25 percent.

According to information on the Mozambican central bank’s website, 18 retail banks currently operate in Mozambique. (macauhub)

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