Credit granted by banks to the economy fell again in the second quarter of 2024, standing at 4.1 billion dollars (270.1 billion meticals), according to data from the Bank of Mozambique (BoM). This reduction follows the fall seen in the first quarter, indicating a downward trend in credit available to the national economy.
According to statistical data published by the BoM analysed this Saturday (31) by DE, in April 2024 credit to the economy had already fallen to 270.6 billion meticals, after two months of growth.
This reduction reversed the 0.5% growth recorded in March, when credit totalled 273.3 billion meticals, up from 271.9 billion meticals in February. The June figure of 270.1 billion meticals represents a slight reduction of 0.2 per cent compared to April, reflecting a negative variation of around 594.7 million meticals.
The distribution of credit by sector shows that private individuals led the way with almost 90 billion meticals in June. This was followed by the transport and communications sectors with 25.7 billion meticals, and commerce with 23.6 billion meticals. This distribution reflects the financing priorities in the Mozambican market.
Interest rates continued to be an influential factor in credit dynamics. In April, the average interest rate for new loans to companies was 22.19%, while for consumption and housing it was 24.69% and 23.16% respectively.
The MIMO rate, the benchmark for monetary policy, was adjusted to 15.75 per cent by the Bank of Mozambique’s Monetary Policy Committee (CPMO), indicating a cautious approach to stimulating credit and controlling inflation.
Despite the reduction in reference interest rates, credit to the economy continues to face challenges in an economic context that seeks to balance controlling inflation with encouraging growth. The BoM’s monetary policies reflect an effort to consolidate a more controlled inflation path, favouring an environment of sustainable growth in the medium term.
Felisberto Ruco
