The Bank of Mozambique (BdM) and the Mozambican Banking Association (AMB) have set the Prime Rate for credit institutions for February at 23.50%, keeping it unchanged for the second month running.

According to a statement released on Tuesday, the Prime Rate of the Mozambican financial system had been falling since 2018, to a low of 15.5%. However, in February 2021, the trend reversed and the rate began to rise until it reached 23.50% in April, and then 24.10% in July, which was maintained in all the following months.

Thus, in January 2024 the rate returned to April's values, after six consecutive months of highs of 24.10 percent, and remained unchanged in February due to AMB's decision.

This rate, according to the BdM and AMB, is the only one that serves as a reference for variable interest rate credit operations. It applies to credit operations contracted between credit institutions, financial companies and customers, plus a margin (spread) which is added or subtracted according to the risk analysis of each specific credit category or operation.