Notice No. 7/GGBM/2005 of June 6 - Amendment of Notice No. 5/GGBM/2005 Regarding Foreign Currency Credit Provisions

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NOTICE NO. 7/GGBM/2005
SUBJECT: Amendment of Notice No. 5/GGBM/2005, of May 20, regarding specific provisions for foreign currency credit operations

Having occurred an inaccuracy in the drafting of Article 3 of Notice No. 5/GGBM/2005, of May 20, the Bank of Mozambique, using the powers conferred upon it by letters b) and d) of paragraph 2 of
Article 3, and of letter d) of paragraph 2 of Article 37 of Law No. 1/92, of January 3,
determines:

Article 1
(Amendment)
Article 3 of Notice No. 5/GGBM/2005, of May 20, is amended, to read as follows:
(Provisions for Overdue Credit)
Whenever the credit granted in foreign currency is overdue or there are well-founded doubts about its repayment or if 30 days have elapsed after the repayment date of at least one installment, the same must be covered by provisions according to the following table:

Specific provisions for foreign currency credit

Entities/Provisions | At the time of concession | Overdue credit --- | --- | --- Exporters and other entities referred to in Article 2 of Notice 5/GGBM/2005, of May 20. | 0% | The provisions set forth in
Chapter IV of
Notice No. 5/99, of February 26 apply.
Other entities | 50% | 100%

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Article 2
(Clarification of doubts)
Doubts resulting from the interpretation and application of this Notice shall be clarified by the Banking Supervision Department of the Bank of Mozambique.

Article 3
(Revocation and entry into force)
This Notice enters into force immediately and revokes Article 3 of Notice No. 5/GGBM/2005, of May 20.

Maputo, June 6, 2005.

THE GOVERNOR

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Adriano Afonso Maleiane