Mozambique | LAM in turmoil: Dane Kondic's dual role conundrum analysed by Alves Gomes
Bank of Mozambique slams illegalities in the issuance of guarantees by microfinance operators
2:58 CAT | 02 Mar 2017
File photo / Central Bank headquarters in Maputo
The Bank of Mozambique yesterday condemned the practice of microfinance operators issuing bank guarantees contrary to legislation in force in the country.
A central bank statement received by Noticias recalls that bank guarantees can only be issued by banks.
“There being based evidence of non-permitted activities conducted by some microfinance operators, namely the issuance of bank guarantees, the Bank of Mozambique communicates that, in light of article 4 of the Law on Credit Institutions and Financial Companies – Law No. 15/99 of November 1st, with the changes introduced by Law no. 9/2004, of July 21, the issuance of bank guarantees is an activity exclusively allowed to banks,” the statement reads.
The statement adds that institutions authorized to grant credit in accordance with the Microfinance Regulation, approved by Decree No. 57/2004 of 10 December, namely Microbancos, Credit Unions, Savings and Loan Organizations and Microcredit, can only issue other types of guarantees other than banking, and within the context of the microfinance segment and within the scope of the conditions allowed for the exercise of their activity.
Source: Notícias
Show comments
Also read
Leave a Reply
Be the First to Comment!
You must be logged in to post a comment.
You must be logged in to post a comment.