Regulatory Alerts1996-01-10
Added · Updated
Notice No. 014/GGBM/96 Determining the Central Bank's Annual Rediscount Rate
The Banco de Moçambique sets the annual rediscount rate at 39% and establishes usage limits of up to 6% of demand deposits for rediscount operations with terms up to two weeks. An additional 2% penalty tax applies to account overdrafts and mandatory deposit deficits, calculated using a specified formula. This notice takes effect on December 9, 1996.
BANCO DE MOÇAMBIQUE NOTICE NO. 014/GGBM/96 Pursuant to the provisions of Article 23 of Law No. 1/92 of January 3, I determine:
- Annual rediscount rate of the Central Bank: 39%
1.1. Usage limits as a percentage of demand deposits: 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 aggravated by 2 percentage points.
1.2. Incidence: a) Rediscount operations; b) Liquidity financing contracts of a nature comparable to rediscount; c) Account overdrafts; d) Deficits in mandatory deposits.
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Cases c) and d) in the previous point 1.2, representing anomalous situations, will be subject to an additional tax of 2%, 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 established 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 shall take effect from December 9, 1996. Published. Maputo, December 6, 1996. The Governor Adriano Afonso Maleiane