The 600 million meticais [around US$8. 5 million] National Institute of Social Security (INSS) credit line for small and medium enterprises affected by the Covid-19 pandemic will bear an interest rate of 4%.
The fixed interest rate is 4 percent, which can varies depending on the updates to the prime rate determined by the central bank,” the INSS note reveals. Interest will be paid semi-annually or annually, depending on the contract signed, and the capital must be repaid after 36 months.
The Banco Nacional de Investimentos (BNI) has been chosen to manage the scheme, because is a state banking institution and aligned with the objectives of the INSS.
The debt securities are registered with the Mozambique Stock Exchange (BVM), guaranteeing the implementation of reliable and traditional banking mechanisms, and mitigating the inherent risks.
Credit will be made available through BNI, by way of deposit, observing the INSS criteria, namely: Being small or medium-sized; being enrolled in the Social Security system; being up to date with regards to the Social Security system, among other aspects that the bank may consider within its policy