Regulatory Alerts1992-11-09
Added
NOTICE No. 004/GGBM/92, OF NOVEMBER 9 - SETS THE ANNUAL INTEREST RATE FOR CREDIT OPERATIONS
The Bank of Mozambique has set new annual interest rates for credit operations, effective November 10, 1992. The Central Bank's rediscount rates are fixed at 43%, with specific limits for rediscount (up to 6% for 2 weeks) and increases (up to 6% for 1 week, with a 2% surcharge). Commercial banks must apply new credit interest rates ranging from 43% for short-term loans (up to 180 days) to 46% for long-term loans (more than 3 years) to various economic sectors. This new rate regime may also apply to existing credit agreements if the contract allows for interest rate adjustments based on legally established limits.
BANK OF MOZAMBIQUE NOTICE No. 004/GGBM/92 Under the provisions of Article 53 of Law No. 28/91 of December 31, on Interest Rates, the Governor of the Bank of Mozambique determines:
- The following annual interest rates for credit operations are set: I - THE CENTRAL BANK'S REDISCOUNT RATES are set at 43%. The percentage limits for utilization, as a percentage of demand deposits, are maintained. a) Rediscount: limit up to 6% .................................................. term up to 2 weeks b) Increase up to 6% ............................................................... term up to 1 week (In this case, the rate will be increased by 2%) II - The credit interest rates to be applied by commercial banks to the various sectors of economic activity shall be as follows: SHORT TERM MEDIUM/LONG TERMS Up to 180 d Up to 365 d Up to 3 y More than 3 y 43% 44% 45% 46% (where d means days and y means years)
- The rate regime now established may also apply to credit in force on the effective date of this notice, when the respective contract provides for the alteration of the interest rate in case of legal establishment of another limit.
- Doubts arising in the interpretation and application of this notice shall be clarified by a notice from the Governor of the Bank of Mozambique.
- The rates now established come into force on November 10, 1992. Publish Maputo, November 9, 1992 The Governor of the Bank of Mozambique Adriano Afonso Maleiane