Mozambique Banks to Fund Companies Affected by Post-Election Riots

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According to data from the CTA, about 900 companies have been affected by the post-election rioting, which corresponds to the loss of 17,000 jobs.

Mozambican commercial banks announced the availability of 10 billion meticais (USD 156.5 million at the current exchange rate) aimed at funding companies affected by post-election rioting, looting and destruction.

The amounts, which will be made available by several banks, may be accessed at an interest rate of 15%. It will be up to the banks to analyse the risk of companies based on their internal procedures.

According to Teotónio Comiche, chairperson of the Association of Mozambican Banks, the loans and their interest must be repaid within 12 months, while for capital investments, the term is five years.

To gain access to the credit, the banks will have to request guarantees from the companies, and the credit will be available from 1 March to 30 September. The Confederation of Mozambican Business Associations (CTA) called on the government to guarantee security so that the businesses may feel safe to operate, as mass protests, characterised by rioting, looting and destruction, are continuing in some parts of the country.

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According to data from the CTA, about 900 companies have been affected by the post-election rioting, which corresponds to the loss of 17,000 jobs.