The Bank of Mozambique (BM) has set the minimum share capital for setting up mutual guarantee companies and loan guarantee fund managers in the country at 30 million meticais, writes "Notícias."

This is an important step for financial institutions to have the capacity to absorb potential losses and carry out their activities efficiently.

The implementation of the loan guarantee funds is part of the package of 20 economic acceleration measures that includes a financing line of 300 million US dollars to meet the needs of micro, small and medium-sized enterprises in terms of access to finance.

The loan guarantee fund is an initiative of the government, through Decree No. 37/2024, of June 10, with funding from the World Bank in addition to the Executive.

Management companies were set up to administer the fund, with the aim of helping to leverage the economy and making access to credit more flexible, by establishing a mutual support system for micro, small and medium-sized enterprises, through the provision of guarantees and counter-guarantees.

For their part, loan guarantee fund management companies manage loan guarantee funds and carry out other legally permitted operations.

The established minimum share capital must be paid in by means of a cash contribution. (News)