Africa-Press – Mozambique. Mozambique’s benchmark interest rate will remain at 18.9 percent in September, the Mozambican Association of Banks (AMB) said on Tuesday.
September will be the prime rate’s sixth consecutive month at that level, at which it was set on 1 April.
As in previous months, the rate calculated by the AMB and Bank of Mozambique is based on a single index of 13.3% (calculated by the central bank) and a cost premium of 5.6% (set by the AMB).
The creation of the prime rate was agreed between the central bank and the Mozambican Association of Banks (AMB) in June 2017 – with an initial value of 27.75% – to eliminate the proliferation of reference rates for the cost of money.
The aim is for all credit operations to be based on a single rate plus a margin or spread to be added to or subtracted from the prime rate based on risk analysis of each contract, the institutions explained at the time.
