News Column

Moza Banco Unaffected By Banco Espirito Santo Crisis

July 28, 2014

The Mozambican bank Moza Banco has stated that it will not be affected by the financial crisis and scandal that has hit the Portuguese bank Banco Espirito Santo (BES).

BES holds 44 per cent of shares in Moza Banco. However, in a statement the Mozambican bank argued that its business is based on a sound footing.

The statement stressed that "Moza Banco is operated under a model of governance which allows for the separation of shareholders and management, making it less vulnerable to a crisis of this nature".

The bank pointed out that in the first half of this year its volume of business grew by over forty per cent and the number of staff increased by 14 per cent. In addition, both deposits and loans have increased.

It continued, "the bank's majority shareholder is Mocambique Capitais, a group of 400 Mozambicans - professionals and entrepreneurs of diverse origins and sensibilities. Mocambique Capitais is financially sound and holds management control of Moza Banco".

The bank added, "the decisions of Moza Banco are taken in Mozambique, through the governing bodies of the institution".

BES has been hit by the financial crisis in its largest shareholder, the Espirito Santo Financial Group. In addition, its former head, Ricardo Salgado, has been arrested on charges of money laundering and tax evasion. In the last month the share price of BES has dropped by sixty per cent.

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Source: AllAfrica

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