( 5minutes read)
· Mozambique’s National Investment Bank (BNI) announced recently it has received over 900 proposals for funds from a line of credit launched on 1 July to help companies cope with the impact of the Covid-19 pandemic
· The total available from this line of credit is 1.6 billion meticais (about US$ 22 million)
· But the companies submitting proposals are asking for 10 billion meticais – 225 per cent more than what is available
· BNI head office had received 925 proposals so far and it expects by the last day for submitting proposals, the total could reach over 1,000
Mozambique’s National Investment Bank (BNI) announced recently it has received over 900 proposals for funds from a line of credit launched on 1 July to help companies cope with the impact of the Covid-19 pandemic. The total available from this line of credit is 1.6 billion meticais (about US$ 22 million). But the companies submitting proposals are asking for 10 billion meticais – 225 per cent more than what is available. BNI head office had received 925 proposals so far and it expects by the last day for submitting proposals, the total could reach over 1,000.
37 per cent of the projects submitted were for the trade sector, including agricultural marketing. Over 10 per cent of the proposals were for the hotel and tourism industry. The other segments received applications include construction and public works (8%), food industry (7%), education (7%), transport and communications (6%) and farming (4%).
Close to 225 of the proposals were processed, but only 100 have been approved. Over 50 per cent of the funds have been made available to the successful candidates who must submit the required documentation to obtain access to the funds. A sizable number of applications were rejected since they did not meet with the benchmarks set.
Several proposals were rejected because they did not meet the eligibility criteria. The line of credit is intended for micro, small and medium companies – but some of the applicants fall into the category of large companies. Some applicants were technically bankrupt well before the pandemic struck. Some were not repaying previous loans from commercial banks, and some had unpaid taxes, and debts to the National Social Security Institute (INSS).
