(Clarifies Novo Banco stake in Moza Banco, paragraph 3)
MAPUTO Dec 15 Mozambique's central bank has
bailed out the country's fourth largest commercial lender in a
move it said was needed to prevent the failure of its banking
The African country has been grappling with a liquidity
crunch, exacerbated by the International Monetary Fund and
foreign donors cutting off support over loans that were not
approved by parliament or disclosed publicly.
Banco de Mozambique governor Rogério Lucas Zandamela said
the central bank had injected 8 billion meticais ($111 million)
to recapitalise Moza Banco, which is 49 percent owned by
Portugal's Novo Banco, to avoid a run from depositors and
"It would have had a cost of incalculable dimensions. It is
frightening when such an institution falls into bankruptcy,"
The central bank has guaranteed all deposits at Moza Banco,
fired its board and taken over its day-to-day operations.
Moza Banco got into difficulties this year due to a rapid
expansion of its branch network and an incomplete
recapitalisation from shareholders..
The central bank said that it would appoint an evaluation
committee and set up a general meeting for the recapitalisation
or sale of Moza Banco.
($1 = 71.8000 meticais)
(Reporting by Manuel Mucari; Editing by Alexander Smith)