Mozambique’s benchmark interest rate will remain at 18.9 percent in May, the Mozambican Association of Banks announced today.
The value is calculated by AMB and Banco de Moçambique based on a single index of 13.3% (calculated by the central bank) and a cost premium of 5.6% (set by AMB).
The creation of the ‘prime rate’ with an initial value of 27.75% was agreed between the central bank and the Mozambican Association of Banks (AMB) in June 2017 to eliminate the proliferation of reference rates in the cost of money.
The aim is for all credit operations to be based on a single rate, “plus a spread, which will be added to or subtracted from the prime rate through risk analysis” of each contract, explain the promoters
