Mozambique: Sofala authorities clamp down on loan sharks – RM

Login

Register

http://www.clubofmozambique.com/

Mozambique: Sofala authorities clamp down on loan sharks – RM

3:42 CAT | 16 Sep 2022

File photo: O País

The Sofala Provincial Office for Combating Corruption is worried about the proliferation of loan sharks – individuals who engage in financial lending outside the law.

These informal lenders take advantage of their clients’ distressing circumstances to charge unduly high levels of interest.

This is punishable under law, notes spokesman for the Sofala Provincial Office for Combating Corruption, Anastácio Matsinhe.

Matsinhe said loan sharks in Sofala might soon find themselves in court, responding to charges of committing crimes against the national economy.

Matsinhe explained to Radio Mozambique that loan sharks routinely charge exorbitant interest rates and often resort to ‘private enforcers’ to collect debts.

Source: Rádio Moçambique