Maputo, 1 Jul (AIM) – The prime rate, which is used for loans and other credit operations in the financial system, has fallen to 21.2 percent for July after it was 22 percent in June, according to a joint statement from the Bank of Mozambique and the Mozambican Banking Association.
According to the statement, the reduction in the Prime Rate represents some relief for citizens and companies that have taken out or intend to take out loans with financial institutions, as this rate applies to credit operations contracted (new, renewals and renegotiations) between credit institutions and financial companies and their clients, plus a margin (spread), added or subtracted depending on the risk analysis of each specific credit category or operation.
The margins of at least 14 credit institutions (ICSF) listed in the document vary, with regard to housing loans for individuals, from zero to 6 percent. Also for private individuals, the margin for consumer credit varies from zero to 12 per cent.
As for corporate loans, says the document, the margin ranges from 0.65 per cent to five per cent for loans of up to one year, or from one per cent to six per cent for longer terms.
“The spreads of the 14 ICSFs on furniture and real estate leasing operations range from zero to five per cent. The standardized interest rate margins of at least five microfinance institutions are higher, ranging from 8.3 per cent to 58.95 per cent”, reads the document.
(AIM)
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