Maputo — Successive rises in interest rates are making it impossible for some Mozambican companies to pay off bank loans, reports Wednesday's issue of the independent newssheet “Mediafax”.
In order to fight inflation, the Bank of Mozambique has repeatedly hiked its key interest rates. Since October 2015, the Standing Lending Facility (the interest rate paid by the commercial banks to the central bank for money borrowed on the Interbank Money Market) has risen seven time. The latest increase was in July, when the Bank of Mozambique increased the rate by 300 base points, from 14.25 to 17.25 per cent.
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