Bank of Mozambique injects US$111 million into bankrupt bank Moza

16 December 2016

The Governor of the Bank of Mozambique, Rogerio Zandamela, said in Maputo that an injection of about eight billion meticais (US$111 million) in Moza Banco had been made to prevent the collapse of the Mozambican financial system.

Speaking at a press conference after the meeting of the Monetary Policy Committee of the Bank of Mozambique, Zandamela said that “if we had stopped (capitalising Moza Banco), we would have an earthquake, a tsunami, (because the bank) penetrates companies, families, and there would be an unprecedented rush of depositors and creditors.”

According to Zandamela, since the intervention of the Bank of Mozambique, in September, the amounts injected in Moza Banco (part-owned by Portugal’s Novo Banco) should be reimbursed as soon as the bank is sold or recapitalised.

The Bank of Mozambique guaranteed all deposits of Moza Banco, the fourth largest Mozambican bank, replaced its board of directors and took over the daily management of the bank.

Moza Banco ran into difficulties at the beginning of the year due to the rapid expansion of its banking network and lack of recapitalisation by the shareholders. (macauhub)