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Bank of Mozambique and AMB Maintain Prime Rate at 20.60% for Second Consecutive Month

Bank of Mozambique and AMB Maintain Prime Rate at 20.60% for Second Consecutive Month

The Bank of Mozambique (BM) and the Mozambican Association of Banks (AMB) fixed at 20,60%, the prime rate that will be in force in credit institutions in August this year, keeping it unchanged and high for the second consecutive month.

Until September 2021, the Prime Rate was at 18.60%, a level that remained until April. With the recent fuel and food crises originating from the conflict in Ukraine, the WB and AMB raised the rate to 19.10%, this in the month of May.

Even so, the crisis scenario worsened, and in June the Prime Rate rose again to 20.60%.

“The Prime Rate of the Mozambican Financial System is the only reference rate for variable interest rate credit operations. This rate is applied to credit operations contracted between credit institutions, financial companies and clients, plus a margin (spread) that will be added or subtracted according to the risk analysis of each category of credit or operation in concrete,” says the WB statement.

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Also according to the document, the standardized interest rate spreads of at least five microfinance institutions are higher, ranging from 10.42% to 51.40%.

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