Mozambique: Credit in economy rises in February, reversing eight months of decline

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Mozambique: Credit in economy rises in February, reversing eight months of decline

9:47 CAT | 30 Apr 2024

FILE - For illustration purposes only. [File photo: Lusa]

The stock of credit in Mozambique’s economy recorded its first slight increase in February, to 271,948 million meticais (€3,986 million), after eight consecutive months of decline, according to official data compiled by Lusa this Tuesday.

According to data from the most recent statistical report from the Bank of Mozambique, credit to the economy granted by banks had risen last May (2023) to a maximum of 298,182 million meticais (€4,303 million), but since then it has been falling, having declined 2.2% from December to January (2024) alone, falling to 271,183 million meticais (€3,975 million).

The same report states that, at the end of February, the average interest rate on new loan operations stood at 22.87% for companies, 29.65% for consumers and 21.50% for housing, despite the reduction in the policy rate to 23.50%.

The largest share of the stock of credit to the economy in February continued to be that relating to individuals, which amounted to 88,447 million meticais (€1,296 million), continuing to grow monthly.

Commerce again saw the total credit granted fall, to 24,483 million meticais (€358.8 million), while the manufacturing industry fell to just over 21,595 million meticais (€316.5 million) and transport and communications fell to 27,212 million meticais (€399 million).

According to data from the central bank, 15 commercial banks and 12 micro-banks operate in Mozambique, as well as various credit cooperatives and savings and credit organizations.

Source: Lusa