Notice No. 1/GBM/2008 Concerning the Period for the Formation of Mandatory Reserves and Revoking Notice No. 2/GBM/2007

BOLETIM DA REPÚBLICA
OFFICIAL PUBLICATION OF THE REPUBLIC OF MOZAMBIQUE NATIONAL PRESS OF MOZAMBIQUE

NOTICE

The matter to be published in the "Boletim da República" must be sent as a duly authenticated copy, one for each subject, containing, in addition to the necessary indications for this purpose, the following endorsement, signed and authenticated: For publication in the "Boletim da República".

SUMMARY

Ministry of the Interior:
Ministerial Diploma No. 17/2008:
Grants Mozambican nationality, by reacquisition, to Carlos Alberto Guerreiro Pronto.
Ministerial Diploma No. 18/2008:
Grants Mozambican nationality, by reacquisition, to Ana Cristina Morais Rodrigues.

Bank of Mozambique:
Notice No. 1/GBM/2008:
Concerning the period for the formation of mandatory reserves, and revoking Notice No. 2/GBM/2007 of 28 February.

MINISTRY OF THE INTERIOR

Ministerial Diploma No. 17/2008 of 13 February

The Minister of the Interior, having verified that the provisions of Article 14 of Decree No. 3/75 of 16 August, combined with Article 16 of Law No. 16/87 of 21 December, have been complied with, and in the exercise of the power granted to him by Article 12 of the Nationality Law, determines:

Mozambican nationality is granted, by reacquisition, to Carlos Alberto Guerreiro Pronto, born on 22 December 1942, in Marromeu.

Ministry of the Interior, in Maputo, 21 May 2007.

The Minister of the Interior, José Condugua António Pacheco.

Ministerial Diploma No. 18/2008 of 13 February

Mozambican nationality is granted, by reacquisition, to Ana Cristina Morais Rodrigues, born on 1 November 1978, in Mopéia - Zambézia.

Ministry of the Interior, in Maputo, 21 January 2008.

The Minister of the Interior, José Condugua António Pacheco.

BANK OF MOZAMBIQUE

Notice No. 1/GBM/2008 of 13 February

Notice No. 2/GBM/2007 of 28 February, issued by the Governor of the Bank of Mozambique, which reviewed the regime for the formation of mandatory reserves, fixed the rate at 10.15%.

However, the recent positive evolution of the country's macroeconomic indicators justifies the reduction of the mandatory reserve rate to a single-digit level. Thus, under the provisions of paragraphs 1 and 2 of Article 27 of Law No. 1/92 of 3 January, the Bank of Mozambique determines:

CHAPTER I
Scope, Calculation, and Formation

ARTICLE 1
(Scope of Application)

The provisions of this Notice apply to all credit institutions covered by Law No. 15/99 of 1 November - Law of Credit Institutions and Financial Societies, with the amendments introduced by Law No. 9/2004 of 21 July, holding liabilities referred to in Article 2 of this Notice, and monetary assets, with the Bank of Mozambique.
Excluded from the provisions of the preceding paragraph are credit institutions that do not receive public deposits, in accordance with the provisions of Law No. 15/99 of 1 November, with the amendments introduced by Law No. 9/2004 of 21 July.

Wednesday, 13 February 2008 | SERIES - Number 7

ARTICLE 2
(Liabilities Subject to Incidence)

All liabilities of class 4 (four) of the Chart of Accounts of the Banking System constitute the Incidence Base (IB) for mandatory reserves, excluding deposits from other institutions resulting from applications in the Interbank Money Market.

ARTICLE 3
(Incidance Rate)

The incidence base referred to in Article 4 of this Notice is subject to a coefficient designated as the minimum daily rate, fixed at 9.00%, which must be observed daily.

ARTICLE 4
(Calculation of the Incidence Base)

The incidence base upon which the daily rate will be applied shall be calculated from the simple arithmetic mean of the balances of the liabilities referred to in Article 2 verified over the calculation period.
The calculation periods for the incidence base are, in each month, as follows:
1st period - from the 1st to the 15th day;
2nd period - from the 16th to the last day of each month.

ARTICLE 5
(Period of Formation)

The periods for the formation of mandatory reserves under this regime are as follows:
1st period - from the 7th to the 21st day;
2nd period - from the 22nd to the 6th day of the following month.
The mandatory reserve of the 1st formation period shall correspond to the 2nd calculation period and vice-versa.

ARTICLE 6
(Form of Formation)

The mandatory reserve shall always be constituted in the national currency, the Metical.
The mandatory reserve may be constituted in at least one of the following forms:
a) Cash; b) Checks drawn by the institutions themselves on other national credit institutions; c) Account-to-account transfer; d) Other financial assets capable of integrating the clearing system, excluding demand deposits in foreign currency of credit institutions, with the Bank of Mozambique; e) Cash in the institution's vault, maintained at branches and/or counters in rural areas, as defined by the Bank of Mozambique.

ARTICLE 7
(Methodology of Formation for Observance of the Daily Rate)

The daily balances of demand deposits in National Currency of credit institutions with the Bank of Mozambique may not be lower, on each day, than the amount of mandatory reserve resulting from the multiplication of the rate fixed in Article 3, by the incidence base calculated in the terms described in Article 4 of this Notice.

CHAPTER II
Sanctions

ARTICLE 8
(Calculation of Penalties)

Penalties under this Notice apply to the deficit of mandatory reserves and to the delay in sending information requested by the Bank of Mozambique, and shall take the form of a monetary penalty.
Penalties on the deficit of mandatory reserves calculated at the end of each day are determined based on the following formula:
Penalty = [ (SD + CX - (r x IB)) x T ]
Where:
SD - is the daily accounting balance of demand deposit accounts in National Currency of credit institutions with the Bank of Mozambique, obtained from statements issued by the Bank of Mozambique's Operations and Treasury Department, assuming always that SD is greater than or equal to zero. CX - is the value in cash maintained daily in the vaults of credit institutions, obtained from information sent by the institutions to the Bank of Mozambique's Markets Department. r - is the minimum daily incidence rate of the mandatory reserve, in accordance with Article 3 of this Notice. IB - is the incidence base of the mandatory reserve, in accordance with Article 2 of this Notice. T - is the penalty rate for the deficit of mandatory reserves, in accordance with paragraph 3 below.
The penalty T, provided for in the preceding paragraph 2, shall correspond to the highest interest rate among the following:
a) The interest rate of the Overnight Facility in force on the date of the infraction, plus two percentage points; b) The highest interest rate of the active operations of the infringing institution, plus two percentage points.
Without prejudice to other measures that may be adopted, the Bank of Mozambique shall charge a penalty of five hundred meticais, for each business day of delay in sending the information referred to in Article 12 of this Notice.
The Bank of Mozambique shall debit the demand deposit account of the infringing credit institution for the value of the penalties calculated according to the preceding paragraphs.

ARTICLE 9
(Aggravation of Penalty)

The penalty rate provided for in paragraph 3 of the preceding article shall be aggravated by 10 (ten) percentage points whenever an institution incurs a deficit of mandatory reserves in 3 (three) consecutive formation periods.

ARTICLE 10
(Blocked Account Regime)

If in 4 (four) consecutive formation periods of mandatory reserves, in 2 (two) of them (successively or not), an institution incurs deficits of mandatory reserves in 3 (three) business days of the same formation period, the Bank of Mozambique shall automatically block the balance of the free movement account, allowing only credit movements, without prejudice to any additional measures provided for in the Interbank Clearing and Settlement Regulation, approved by Notice No. 9/GBM/2005 of 22 August.
The institution whose account is blocked is obliged to immediately instruct the opening of an account for clearing and other types of operations.
The institution is also obliged to fund the blocked account to comply with the mandatory reserve.
The Bank of Mozambique reserves the right to transfer from the free movement account to the blocked account the balances necessary to comply with mandatory reserves.
As long as deficits persist in the blocked account, the penalty on daily deficits shall be applied based on the formula provided for in paragraph 2 of Article 8.
Within a period of no less than 4 (four) formation periods of mandatory reserves, the Bank of Mozambique may instruct the lifting of the account block.

CHAPTER III
Final Provisions

ARTICLE 11
(Exemption Period)

All credit institutions are exempt from the formation of mandatory reserves for a maximum period of 3 (three) months, starting from the date of commencement of their activity.
The exemption referred to in the preceding paragraph is automatic, and its terms shall be formally communicated by the Banking Supervision Department of the Bank of Mozambique.

ARTICLE 12
(Sending of Information)

Credit institutions covered by this Notice shall send to the Bank of Mozambique, with reference to the calculation period of the incidence base indicated in paragraph 2 of Article 4, the information contained in the Mandatory Reserves Calculation Form attached, which forms an integral part of this Notice.
The Mandatory Reserves Calculation Form referred to in the preceding paragraph must be received by the Bank of Mozambique by the third business day following the end of the calculation period to which it refers, and may be corrected until the last business day prior to the start of the respective formation period. Late submission of forms is an indispensable condition for acceptance regarding subsequent periods.
Any correction that occurs during the formation period to which the information refers and that implies a reduction of the incidence base shall not be considered for penalty calculation purposes; the previous information shall prevail for these cases.
Credit institutions are obliged to retain, for a period of 5 (five) years, all documents that allow them to prove the information contained in the form referred to in paragraph 1 of this article.

ARTICLE 13
(Efficacy and Revocation)

This Notice shall take effect from the mandatory reserve formation period starting on 7 April 2008, revoking Notice No. 2/GBM/2007 of 28 February.

ARTICLE 14
(Clarification of Doubts)

Doubts arising in the interpretation and application of this Notice shall be submitted to the Markets Department of the Bank of Mozambique.

Maputo, 18 January 2008. - The Governor, Ernesto Gouveia Gove.

ANNEX - MANDATORY RESERVES CALCULATION FORM

DESIGNATION | DAILY BALANCES* | AVERAGE
RO's (XX%)

A) RESIDENT DEPOSITS
Demand Deposits (4200 + 4210 - 42000-42100)
Notice Deposits (4201 + 4211-42010-42110)
Time Deposits (4202 + 4212 - 42020-42120)
Mandatory Deposits (4208+4218)
Other Deposits (4209 + 4219 - 42090-42190)

B) NON-RESIDENT DEPOSITS
Demand Deposits (4300 + 4310)
Notice Deposits (4301 + 4311 )
Mandatory Deposits (4308+4318)
Time Deposits (4302 + 4312)
Other Deposits (4309 + 4319)

C) GOVERNMENT DEPOSITS
(42000 + 42010 + 42020 + 42090 + 42100 + 42110 + 42120 + 42190)

D) DEPOSITS FROM OTHER NATIONAL CREDIT INSTITUTIONS (That do not result from applications in the Interbank Money Market) (4011+4012+4013+4014+4015+4019)

E) LOANS (4400+4401+4410+4411)

F) LIABILITIES REPRESENTED BY SECURITIES
Deposit Certificates (450)
Bonds (451)
Own Acceptances (452)
Others (459)

G) OTHER RESOURCES
Checks and Orders to Pay (4600+4610)
Consigned Resources (4602+4612)
Current Account Resources (4603+4613)
Collateral Account Resources (4604+4614)
Subscription Account Resources (4605+4615)
Others (4609+4619)

H) CREDITORS
Suppliers (4800+4810)
Creditors from Factoring Contracts (4801+4811) Creditors from Credit Card Operations (4802+4812) Other Creditors (4809+4819)

I) DUE LIABILITIES
Taxes to Pay (490)
Withheld Taxes (491)
Social Security Contributions (492)
Collections on Behalf of Third Parties (493)
Interest, Dividends and Other Capital Remuneration to Pay (494) Drawn Bonds (495) Complementary Social Security Schemes (496) Others (499)

J) DEPOSITS OF THE BANK OF MOZAMBIQUE
(That do not result from applications in the Interbank Money Market) (4001+4002+4003+4004+4005+4009)

K) DEPOSITS FROM FOREIGN CENTRAL BANKS
(That do not result from applications in the Interbank Money Market) (4101+4102+4103+4104+4105+4106+4109)

L) DEPOSITS FROM FOREIGN CREDIT INSTITUTIONS
(That do not result from applications in the Interbank Money Market) (4111+4112+4115+4116+4119)

M) DEPOSITS FROM INTERNATIONAL FINANCIAL ORGANIZATIONS (415)

TOTAL

In the first line of the balances columns, indicate the respective dates.

Lineage: No known changes

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