Regulatory Alerts1996-01-10
Added · Updated
Notice No. 011/GGBM/96 Determining the Central Bank Annual Rediscount Rate Under Article 30 of Law No. 28/91
The Governor of the Central Bank sets the annual rediscount rate at 39.85% and defines usage limits for rediscount and add-on operations as percentages of demand deposits. A 2% surcharge applies to overdrafts and mandatory deposit deficits, calculated using a specified penalty rate formula. This notice takes effect on November 19, 1996, and may apply to existing operations if contracts allow for rate alterations.
NOTICE NO. 011/GGBM/96
Pursuant to the provisions of Article 30 of Law No. 28/91 of December 31, regarding interest rates, I determine:
- Annual rediscount rate of the Central Bank: 39.85%
1.1. Usage limits as a percentage of demand deposits: a) Rediscount: limit up to 6% ... term up to 2 weeks; b) Add-on up to 6% ... term up to 1 week. In this case, the rate will be increased by 2 percentage points.
1.2. Scope a) Rediscount operations; b) Liquidity financing contracts of a nature comparable to rediscount; c) Overdrafts; d) Deficits in mandatory deposits;
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Cases c) and d) in the preceding point 1.2, representing anomalous situations, will be subject to a 2% surcharge, using the formula: Tp = ((1 + Tr) * 1.02 – 1) * 100 Where: Tp = Penalty rate; Tr = Rediscount rate;
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The rate regime hereby fixed may apply to operations in force on the date of entry into force of this NOTICE, when the respective contract provides for its alteration in the event of the legal fixation of another limit.
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This NOTICE takes effect from November 19, 1996.
Published Maputo, November 15, 1996 The Governor Adriano Afonso Maleiane