Measures to support companies and families

After an extraordinary meeting of its board of directors, the Bank of Mozambique yesterday announced new measures to support companies and families affected by the impact of the new coronavirus pandemic on the country’s economy. The central bank announced in a statement, the “introduction of foreign currency credit lines for banks and relaxation of the conditions for restructuring bank customer credits” to mitigate the effects of the Covid-19 pandemic.

“These measures reinforce decisions previously taken, and aim to provide liquidity in foreign currency and in national currency to help companies and families honour their commitments, following the worsening risks arising from the macroeconomic impacts” of Covid-19, it explained.

The measures consist of introducing, from Monday, a foreign currency line of credit for institutions participating in the Interbank Foreign Exchange Market, in the global amount of US$500 million [€467 million], for a period of nine months”.

“The non-constitution of additional provisions by credit institutions and financial companies in cases of renegotiation of the terms and conditions of the loans, before their maturity, for the clients affected by the pandemic” has also been authorised.

This measure also comes into force today, and will last until December 31.

The Bank of Mozambique “will continue to monitor the economic-financial indicators and macroeconomic impacts” of Covid-19, and “will take additional corrective measures whenever necessary”, the statement concludes. A week ago, the institution announced a reduction in the level of the banking system’s mandatory national (metical) and foreign currency reserves. The new coronavirus responsible for the Covid-19 pandemic has infected more than 308,000 people worldwide, of whom more than 13,400 have died.