The amount invested in compulsory and complementary pension funds fell by 50 percent in one year, according to central bank data compiled this Friday, December 6, by Lusa.
According to the agency, the amount fell to nine billion meticals at the end of June. ‘This reduction is associated with the increase in investments in long-term instruments traded on the securities market, to the detriment of short-term investments in the banking sector,’ explained the Bank of Mozambique’s financial stability bulletin.
During this period, the weight of pension fund deposits over total banking sector deposits was 1.38 per cent, compared to 2.93 per cent in the first half of 2023, which ‘shows that pension fund resources tend to be a less important source of funding with little impact on the assessment of liquidity risk.’
In June 2023, 18.2 billion meticals were invested in compulsory and complementary pension funds, which aim to ‘reinforce compulsory social security benefits’.
The bulletin added, on the evolution of the weight of the value of securities held by pension funds over the total value of securities on the Securities Market (MVM), that this ‘showed an upward trend’, rising to 29.52 per cent, an increase of 7.58 percentage points compared to June 2023.
‘This trend, in a different direction to that observed in relation to the dynamics of the weight of pension fund deposits over total banking sector deposits, attests to the fact that the managers of these funds are increasingly investing their resources in the Securities Market, preferentially to the detriment of bank deposits,’ concludes the central bank.
