Mozambique Airports borrows money to pay salaries after court order freezes its bank accounts

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Mozambique Airports borrows money to pay salaries after court order freezes its bank accounts

2:59 CAT | 26 Jun 2019

File photo: RM

Mozambican company Aeroportos de Moçambique (Mozambique Airports, AdM) says it has paid all wages on June 20 thanks to its “good relations” with the banks.

This action saw the company borrowing money while its accounts remained frozen by order of the Judicial Court of Maputo, the capital of the country.

AdM declined to disclose figures, but said the loan was very short-term, while nonetheless implying interest payments.

The freezing ordered by the court is the result of a lawsuit filed by the Liquidation Commission of the defunct ‘Nosso Banco’.

The commission requires that Mozambican airports pay its 820 million meticais debt in less than a year, “which is impossible considering the current situation of the company”, the company’s Financial Administrator Saíde Júnior explained, cited by AIM.

AdM hoped that the situation would be resolved by Wednesday at the latest.

‘O Nosso Banco’, at the time the third largest bank in Mozambique and under chiefly domestic ownership, closed in November 2016 because of financial problems.

The central bank considered that the revocation of the Nosso Banco license was the only solution and said at the time that the bank had solvency ratios well below the legal minimum, negative liquidity problems and also problems with capital injections.

Source: Noticias