The capitalisation process of the Moza bank is progressing according to the schedule approved at the Mozambican bank’s general meeting, and the bank is operating normally under the intervention of the Bank of Mozambique and leadership of an interim board, the Mozambican central bank said on Thursday.
The statement from the Bank of Mozambique’s said there was, “no sign of alarm about the present and future stability of Moza,” and added that the stability of the financial system and strengthening confidence in the future of the bank are the main objectives of the capitalisation process.
In a separate statement released on Wednesday, the Chairman of the Interim Administration, João Figueiredo, said the capitalisation process began on 23 January, when the shareholders unanimously approved the required capital increase.
At the end of September 2016 the Bank of Mozambique decided to suspend the members of the Board of Directors and Executive Committee of Moza due to deterioration in the financial condition of the bank, as the solvency ratio had fallen below the minimum required.
At the same time the Mozambican central bank appointed an interim board, chaired by João Figueiredo, to lead the bank until the situation is normalised.
At the end of January, the General Meeting of shareholders of Moza, which is part-owned by Portugal’s Novo Banco, approved a capital increase of 8.17 billion meticais (107.7 million euros), after December the Bank of Mozambique injected about 8 billion meticais (105 million euros) in the bank, to halt its collapse and avoid “an earthquake” in the Mozambican financial system. (macauhub)