Notice No. 016/GGBM/96 Determining the Central Bank Annual Rediscount Rate

BANK OF MOZAMBIQUE

NOTICE NO. 016/GGBM/96

Pursuant to the provisions of Article 23 of Law No. 01/92 of January 3, I determine:

1. Annual rediscount rate of the Central Bank: 32%

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 increased 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;

2. Cases c) and d) in point 1.2 above, representing anomalous situations, will be subject to a surcharge of 2%, using the formula:
   Tp = (( 1 + Tr ) * 1.02 – 1 ) * 100
   Where
   Tp = Penalty rate;
   Tr = Rediscount rate;

3. The rate regime now 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.

4. This NOTICE takes effect from December 16, 1996.

Published
Maputo, December 12, 1996

The Governor
Adriano Afonso Maleiane