Annual Report 2007

The state creditor balance includes 8,262 thousand Meticais in re-
spect of the estimated income tax charge for the year 2007.
Short-term loans include overdrafts in Meticais granted to the fol-
lowing institutions:
2007 2006
Millennium BIM 26,782 24,023
Barclays Bank 34,436 –
Standard Bank 28,176 –
BCI Fomento 21,075 4,848
110,469 28,871
Millennium BIM’s overdraft was renewed in November 2007 for a pe-
riod of 180 days. The maximum amount of the overdraft was 26,000
thousand Meticais. The overdraft carries interest based on the annual
variable Prime Lending Rate for the Metical and a spread of 3%.
BCI Fomento’s overdraft was also renewed in November 2007 for
a period of six months. The maximum limit of the overdraft was
25,750 thousand Meticais. The overdraft carries interest based on
the annual variable Prime Lending Rate for the Metical and a spread
of 2%. Barclays overdraft was started in August 2007 for a period
of eight months. The maximum limit of the overdraft was 35,000
thousand Meticais. The overdraft carries interest based on the FPC
rate and a spread of 2.5%.
Standard Bank’s overdraft was started in December 2007 for a period
of one year. The maximum limit of the overdraft was 48,000
thousand Meticais. The overdraft carries interest based on the BT’s
rate for 3 months and a spread of 4%.
10. Provisions
The amount recorded in this balance is related to the general provision
for possible loan losses, and is calculated in accordance with
the criteria mentioned in Note 1, line d). The movements during the
period were as follows:
2007 2006
Opening balance 10,695 6,206
Charge for the year 12,086 6,175
Reversal/write-down (4,823) (1,684)
Charged to income statement (Note 15) 7,263 4,491
Utilization (7) (2)
Closing balance 17,951 10,695
11. Share capital
The authorised share capital amounting to 129,020 thousand Met-
icais, representing 129,020 shares of one thousand Meticais each
is fully subscribed and paid up.
In May 2007, there was a change in the shareholding structure of
the Bank, as a result of an increase of USD 2,000,000 in ProCredit
Holding’s shares. The actual percentage was now 85.5% of the
share capital.
The shareholding structures as at 31 December 2007 and 31 December
2006 was as follows:
2007 % Amount
ProCredit Holding 85.5 110,370
Stichting DOEN –
Postcode Loterij/Sponsor Loterij/
BankGiro Loterij 12.1 15,650
Mozambican Government 2.4 3,000
129,020
2006 % Amount
ProCredit Holding 75.8 58,350
Stichting DOEN –
Postcode Loterij/Sponsor Loterij/
BankGiro Loterij 20.3 15,650
Mozambican Government 3.9 3,000
12. Legal reserve
77,000
In compliance with Nr. 63 from Regulation Nr. 15/99, published on
the 1st November 1999, which regulates the establishment and on
going activity of credit institutions, a percentage of no less than
15% of the net profit for the year must be used to create a legal
reserve, until it reaches a maximum amount equal to the share capital.
This reserve is not distributable. During 2007, the movements
under the Reserves account were as follows:
Opening Increase Utilisation Closing
balance balance
Legal reserve 993 5,640 _ 6,633
993 5,640 _ 6,633
13. Interest and similar income
This balance comprises:
2007 2006
Interest from loans and advances 282,934 171,172
Interest from deposits on call 1,810 68
14. Interest expense and similar charges
This balance is made up of:
284,744 171,240
2007 2006
Interest paid on term deposits 21,097 9,238
Interest paid on loans 15,551 7,740
15. Impairment for losses on loans and other assets
36,648 16,978
This represents the following amounts charged to the income statement
during the year:
Provisions for overdue loans
2007 2006
and advances (Note 4) 17,118 7,095
Provision for other risks (Note 6) 651 640
Provision for general credit risk
(Note 10) 7,263 4,491
16. Income from financial operations
This amount is made up as follows:
F i n a n c i a l S tat e m e n t s
25,032 12,226
2007 2006
Foreign exchange gains 8,868 5,002
Foreign exchange losses (5,053) (1,391)
3,815 3,611