Regulatory Alerts2020-03-23
Circular No. 02/EFI/2020, of March 23 - Credit Restructuring in the Context of the COVID-19 Pandemic
The Bank of Mozambique issued Circular No. 02/EFI/2020 to mitigate the economic impact of the COVID-19 pandemic by authorizing foreign currency credit lines for banks and permitting special credit restructuring terms for affected clients. The regulation explicitly waives the requirement for credit institutions to establish additional regulatory provisions under Article 19 of the Minimum Provisions Regime for loans restructured due to the pandemic. This directive takes immediate effect and remains valid through December 31, 2020, with interpretive queries directed to the Bank's Prudential Supervision Department.
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