Communication - Presse

BdM Frees Reserves for Production Lending, LNG Guarantee Reconfirmed

The BdM has created a mandatory reserve deduction regime in meticais to incentivise new lending directed at import substitution and export diversification.

In force since 28 October, the mechanism allows banks to deduct 110% of the outstanding capital of eligible investment loans and 100% of working capital credits from their mandatory reserve requirements. The intention is to channel part of the resources immobilised at the central bank towards productive activity.

The incentive carries a pricing condition: investment credits are subject to the MIMO rate, currently at 9.25%, while working capital loans are priced at the same rate plus 1.5 percentage points, equating to 10.75%. Both will track future changes to the monetary policy rate.

The scheme will run for 18 months and covers exclusively new loans denominated in local currency. Renewals, restructurings, and substitutions of credits granted before its entry into force are excluded.

Each institution must originate at least 50 new operations every six months, with disbursements equivalent to at least 6% of the average mandatory reserves constituted over the preceding six periods. Banks that fall short of these targets will be required to provide the regulator with a written explanation.

Prime Rate Holds at 15.5% for November

Despite the new productive credit incentive, the prime rate remains at 15.5% for November, marking a seventh consecutive month of stability, according to an announcement published on Friday, 30 October, by the Mozambican Banks Association (AMB).

The rate has been unchanged since May, following three reductions of 10 basis points each in January, March, and April, which brought it down from 15.8% to 15.5%.

Used as a benchmark for the pricing of bank lending, the prime rate does not necessarily represent the final rate charged to individual clients, to which a spread may be added depending on the risk profile of the operation.

The decision mirrors the stance of the central bank, which, at the Monetary Policy Committee meeting of 30 September, kept the MIMO rate at 9.25%. The new reserve regime thus introduces specific conditions for certain productive credits within a market whose general reference rate remains unchanged.

$2.2 Billion Guarantee Reconfirmed for Mozambique LNG

In the gas sector, the government has reconfirmed its sovereign guarantee of US$2.2 billion to the creditors of Mozambique LNG, the project led by TotalEnergies in Area 1 of the Rovuma Basin in Cabo Delgado.

Source: BdM Frees Reserves for Production Lending, LNG Guarantee Reconfirmed • 360 Mozambique