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Prime minister proposes legal reforms to strengthen banking institutions in Mozambique
12:59 CAT | 24 Nov 2016
File photo ? The Prime Minister was addressing Parliament this morning
Prime Minister Carlos Agostinho do Rosario today proposed legal reforms to allow the merging of banking institutions found to be in difficulties with those more durable.
According to the prime minister, “the legislation in force does not allow the Bank of Mozambique to use the Deposit Guarantee Fund as an instrument for facilitating merger processes between stronger banks and those facing financial difficulties”.
Based on lessons learned from the closure of O Nosso Banco, the government also wants extensive legal reforms to “ensure greater protection for depositors, both individuals and corporations, in the event of credit institution financial difficulties”.
Carlos Agostinho do Rosário said that the government was evaluating the possibility of increasing the limit on guarantee fund refunds to ensure the repayment of more clients hurt by the liquidation of Nosso Banco.
So far, the existing guarantee covers the reimbursement of 91 percent of O Nosso Banco depositors whose balances did not exceed 20,000 meticais.
Source: O País
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