Millennium bcp opens EUR 20 million Portugal-Mozambique financing line

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Millennium bcp opens EUR 20 million Portugal-Mozambique financing line

1:41 CAT | 04 Apr 2019

File photo: Lusa

Millennium bcp, together with Millennium bim, has made available a EUR 20 million financing line to boost trade between Portugal and Mozambique, the bank announced yesterday.

In a statement, the Portuguese bank reports that the Millennium Portugal-Mozambique Line provides access to financing for Portuguese companies in exports that may benefit from the state Insurance on Export Credits guarantee managed by COSEC.

“This line aims to foster international business between the two countries, providing Millennium bcp and Millennium bim customers a privileged channel for the completion of their businesses,” the statement said.

According to the bank, this line creates “favourable conditions” for Portuguese companies to access financing, contributing “to the development of international business between the two countries”.

The banks’ statement reproduces recent figures from the National Statistical Institute (INE) and the Portuguese Agency for Investment and Foreign Trade (AICEP), showing that trade in goods and services between Portugal and Mozambique grew by 1.5% in 2018, against 2017.

Exports from Portugal to Mozambique increased by 5.4% in 2018 compared to 2017 (from EUR 334.7 to 352.7 million), the communique adds.

Among the conditions laid down for access to the financing line are, in addition to insurance, exports with a forward payment up to 365 days, a maximum amount of one million Euros per export shipment, and that “exported goods must have a relevant national incorporation”.

Millennium bcp is the main shareholder of the Mozambican bank Millennium bim.

The announcement of the financing line comes about three weeks after Mozambique was hit by Cyclone Idai, which caused at least 598 deaths and 1,641 injuries and affected a total of 1.3 million people in the central region of the country, according to the latest authority figures.

Source: Lusa