World Bank / IFC involvement in Moza Banco recapitalisation for “transparency”- A Verdade

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World Bank / IFC involvement in Moza Banco recapitalisation for “transparency”- A Verdade

3:39 CAT | 09 Dec 2016

A representative of the World Bank is to be appointed to the Evaluation Commission that will lead the Moza Banco recapitalization and sale process.

Just over two months after Mozambique’s central bank intervened in Moza Banco SA as a result of the unsustainability of its financial situation, the Mozambican Banking Regulatory Institution announced last Monday (5 December) that it would shortly appoint an evaluation committee to lead the bank’s recapitalisation and sale process following the finalisation of the KPMG report.

The committee, to be chaired by João Figeuiredo, will evaluate the report “to be prepared by KPMG and the Moza Banco Financial Directorate for subsequent referral to the shareholders, enabling them to make a decision on the capital increase to be decided by the General Meeting; and monitor the results of the General Assembly vote and promote their execution,” the Bank of Mozambique statement said.

In addition to João Figueredo, the evaluation committee will be composed of another member, who will be a Bank of Mozambique administrator, and a second member who will be a representative of the World Bank’s private sector investment arm, the International Finance Corporation (IFC).

In response to a question from A Verdade, Alberto Bila, administrator of the Legal, Regulatory, Licensing and Human Resources area of the Bank of Mozambique, clarified the presence of the representative of the Bretton Woods institution in the Moza Banco. “We found in this institution someone who could bring about the heightened transparency which is desirable in these processes. This was the main reason”.

Founded in 2008, Moza Banco is 50.9 percent owned by Mozambique Capitals and 49 percent owned by the Portuguese Novo Banco. The fourth largest bank in Mozambique, it is apparently now stabilised and even opened four new branches in Maputo and Matola recently.

“Moza has the third largest banking network in the country, with more than 50 branches. We have a presence in all provinces and are currently the only bank with branches in informal markets. Our client base exceeds 100,000,” Figueiredo says.

Source: A Verdade