Credit from Mozambican banks to the Mozambican economy totalled 277.2 billion meticals (4.3 billion dollars) in May, the highest figure since the beginning of this year.
According to the BoM document, published by Lusa, this positive performance represents an increase of 2.5 per cent compared to the volume of credit to the economy granted by the banks in April, which totalled 270.6 billion meticals (4.1 billion dollars).
“Credit to the economy granted by banks had risen last May to a maximum of 298.1 billion meticals. It then began to fall, having accumulated a 2.2 per cent drop from December to January, when it reached 271.1 billion meticals,’ the institution’s statistical report explains, adding that credit to individuals continues to lead and has been growing since the beginning of 2024, having stood at 91.2 billion meticals in May, followed by transport and communications, with 26.8 billion meticals, and trade, with 24.5 billion meticals.
The same report states that at the end of that month, the average interest rate on new loans for companies rose to 23.83 per cent, reaching 24.92 per cent for consumption and 23.33 per cent for housing, while the prime rate stood at 22.30 per cent.
The Mozambican Banking Association (AMB) announced in June that the reference interest rate for credit operations in the country would fall to 22%, the fifth drop in six months.
“This rate, known as the “prime rate”, had been falling since 2018, to a low of 15.5 per cent in February 2021. A few months later, the trend reversed and the rate began to rise until it reached 23.50 per cent in April last year, rising to 24.10 per cent in July, and remaining the same in all the following months,’ he explained.
Meanwhile, in January 2024, the rate fell again, after six consecutive months at highs of 24.10 per cent, settling at 23.50 per cent in February and following the same trajectory in subsequent months.
Data from the central bank indicates that 15 commercial banks and 12 microbanks operate in Mozambique, as well as credit cooperatives and savings and credit organisations.
