156.5 million dollars availabilable for companies affected by riots

Maputo, 28 Feb (AIM) – Mozambican commercial banks on Friday announced the availability of 10 billion meticais (156.5 million US dollars at the current exchange rate) aimed at funding companies affected by post-election rioting, looting and destruction.

The amounts, which will be made available by several banks, may be accessed at an interest rate of 15 percent. It will be up to the banks to analyze the risk of companies based on their internal procedures.

According to Teotónio Comiche, chairperson of the Association of Mozambican Banks, the loans and their interest must be repaid within 12 months, “while for capital investments, the term is five years.”

In order to gain access to the credit, the banks will have to request guarantees from the companies and the credit will be available from 1 March to 30 September.

For its part, the Confederation of Mozambican Business Associations (CTA) once again called on the government to guarantee security, so that the businesses may feel safe to operate, as mass protests, characterized by rioting, looting and destruction, are continuing in some parts of the country.

According to data from the CTA, about 900 companies have been affected by the post-election rioting, which corresponds to the loss of 17,000 jobs.

On the same occasion, Finance Minister Carla Louveira said the government is working with the banks to establish long-term measures for this credit line.

“The government is aware of the concerns about people’s safety, as well as private and public property, and how this affects investment and day-to-day economic activities. We are continuing to work towards maintaining law and order, restoring investment confidence and improving our business environment”, she said.
(AIM)
Ad/pf (285)