Mozambique: Millennium bim bank names new Chairman
File photo
Despite the suspension of its board of directors, the Mozambican retail bank Moza Banco on Tuesday inaugurated four new branches in Maputo and the neighbouring city of Matola.
In late September, the Bank of Mozambique intervened in Moza Banco, declaring that its financial situation had become unsustainable and that its solvency ratio had fallen to below zero. The central bank suspended the Moza Banco board and appointed a provisional board chaired by Joao Figueiredo, who had once run the country’s largest commercial bank, the Millennium-BIM (International Bank of Mozambique).
The central bank, allowed Moza Bank to continue trading, and said it was looking for potential buyers. Indeed, if the original shareholders were willing and able to recapitalize the bank, they could resume control.
Tuesday’s ceremonies showed that Moza Bank is continuing the expansion strategy of its previous management.
“Moza Bank is still alive, and determined to recover its place in the market, serving the public with a high sense of responsibility”, declared Figueiredo.
He told reporters that the central bank has injected capital into Moza Banco, which ensured that it could continue to meet its obligations to its clients. “So far, not a single cheque has been rejected”, said Figueiredo. “The bank has enough liquidity to honour its commitments”.
The central bank had suggested, at the end of September, that Moza Banco could be sold off within six months, and Figueiredo hoped to keep to that timetable for saving the bank. The key task, he added, was to raise the solvency ratio to the eight per cent demanded by the Bank of Mozambique.
If the original shareholders do not recapitalise Moza Banco, others may well step in. A fortnight ago, the central bank confirmed there are potential buyers will to take over Moza Banco.
The bank is now being audited by an international consultancy company. This should give an idea of how much fresh capital is needed to rescue Moza Banco.
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