Circular No. 02/EFI/2020, of March 23 - Credit Restructuring in the Context of the COVID-19 Pandemic

Bank of Mozambique
Administration

CIRCULAR NO. 02/EFI/2020
MAPUTO, MARCH 23, 2020

SUBJECT: CREDIT RESTRUCTURING IN THE CONTEXT OF THE COVID-19 PANDEMIC

Given the need to establish favorable market conditions due to the potential effects of COVID-19, the Board of Directors of the Bank of Mozambique approved the introduction of a foreign currency credit line for banks and the granting of special credit restructuring conditions for banking clients.

In these terms, to implement the procedure to be adopted by credit institutions in cases of renegotiating contractual terms and conditions (credit restructuring) for banking clients under the Regulatory Minimum Provisions Regime approved by Notice No. 16/GBM/2013, of December 31, the Bank of Mozambique, within the competencies attributed to it by paragraph b) of paragraph 2 of Article 37 of Law No. 1/92, of January 3 – Organic Law of the Bank of Mozambique, determines:

1. Credit institutions shall not be required to set up additional provisions arising from Article 19 of the Regulatory Minimum Provisions Regime approved by Notice No. 16/GBM/2013, of December 31, for clients affected by COVID-19.

2. This Circular takes immediate effect and shall remain valid until December 31, 2020.

Any doubts arising from the interpretation and application of this Circular must be submitted to the Prudential Supervision Department of the Bank of Mozambique.

BANK OF MOZAMBIQUE
Financial Stability Division

(Signature)

Gertrudes Tovela
Administrator