Rescued by CenBank – Moza Banco says it already presents “objective results”

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Rescued by CenBank – Moza Banco says it already presents “objective results”

4:58 CAT | 30 Nov 2016

Folha de Maputo / João Figueiredo at the opening of one of the four new branches of Moza in Maputo

The chairman of the board of directors of Moza Banco, which the Bank of Mozambique intervened in at the end of September, has said that the bank is already showing “objective results” and is working on its recapitalisation.

“The set of measures implemented in this short space of time is already producing objective results, both internally and in relation to our clients and partners,” João Figueiredo said at the opening of four new branches in Maputo and on the outskirts of the Mozambican capital.

The current Moza Banco board of directors is working hard to ensure that the recapitalisation operation is completed as soon as possible, and to turn over a page in the history of the institution.

“This process, however, although it is intended to take place as swiftly as possible, can only, given its complexity, evolve in line with the schedule of actions that have been programmed in order to address the situation of the institution in depth and transparently,” Figueiredo said, adding that the opening of the four agencies reflects Moza Banco’s commitment to get closer to customers and the public.

The new agencies are located in Praça dos Trabalhadores, Jardim and Coop neighbourhoods, in Maputo city, and Machava-Sede, in Matola city.

“Despite the challenges we are facing, Moza Banco remains relevant in the national financial sector, with a well-defined organic structure, consolidated internal processes, sophisticated technological systems, a vast infrastructure network and, above all, a professional and competent staff,” Figueiredo said.

At the end of September, Banco de Moçambique suspended Moza Banco’s board of directors and executive committee to “protect the interests of depositors”, and appointed a new board of directors headed by Figueiredo.
Earlier this month, the Bank of Mozambique ordered the dissolution and liquidation of O Nosso Banco, majority owned by the National Social Security Institute [INSS] as presenting a “non-viable situation”, and triggered the deposit guarantee fund mechanism.

Despite the situation of the two banks, the Mozambican government stated last week in the Assembly of the Republic that the country’s financial system was stable, and a safe place to save money.

“Moza remains alive”

“Moza Banco remains alive and determined to recover its place in the market, serving the general public with distinction and a sense of responsibility,” O País cite Figueiredo as saying.

Appointed by the Bank of Mozambique as chairman of Moza’s provisional board of directors, Figueiredo plans to save the bank from crisis in six months from the end of last September. The first aim is to raise the institution’s solvency ratio to at least 8%.

“Let’s say that this is a major objective of the bank’s current administration. But of course we have to comply with matters that do not depend only on management itself, but on third parties,” Figueiredo pointes out.

According to Figueiredo, Moza is receiving liquidity from the Bank of Mozambique, in order to satisfy demand when clients choose to withdraw.

“Regardless of the amount injected by the central bank, to date there have been no cheques not honoured by the bank. The bank has sufficient liquidity to honour its commitments,” the provisional chairman said.

He explains that it is up to shareholders to recapitalise the bank so that Moza has the minimum financial requirements demanded by the central bank. The bank is currently being audited by an international consultant, after which the amount of capital needed will be announced.

Source: Lusa / O País / Folha de Maputo