Regulatory Alerts1996-01-10
Added · Updated
Notice No. 016/GGBM/96 Determining the Central Bank Annual Rediscount Rate
The Bank of Mozambique sets the annual rediscount rate at 32% and establishes usage limits of up to 6% of demand deposits for rediscount operations with terms up to two weeks. A 2 percentage point surcharge applies to increased rediscount limits with terms up to one week, while account overdrafts and mandatory deposit deficits incur a calculated penalty rate. This notice becomes effective on December 16, 1996, and may apply to existing operations if their contracts allow for alteration upon legal fixation of new limits.
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:
- 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;
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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;
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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.
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This NOTICE takes effect from December 16, 1996.
Published Maputo, December 12, 1996
The Governor Adriano Afonso Maleiane