The Banco Popular Desenvolvimento (BPD) and formal-informal financial market linkages in Maputo, Mozambique

The first chapter of this report reviews the recent performance of the BPD as a lending institution, including an analysis of its changing portfolio for the period 1985-91, followed by an analysis of its balance sheets and income statements for 1988-92 in order to evaluate the performance of the standard financial ratios over this period. The second chapter investigates the performance of the current portfolio by reviewing the loan repayment status of a randomly selected sample of borrowers from one principal branch and one office of the BPD servicing an urban and peri-urban clientele in Greater Maputo. The third chapter documents the supplier- and client-level informal financial networks characteristic of the BPD borrower clientele. Chapters 4 and 5 contain case studies of 3 large borrowers from the Bank of Mozambique (and one from the BPD), and case histories for 4 agricultural input supply firms. These case studies highlight the upstream and downstream financial linkages of the respondents to their suppliers and clients, and review their experience with formal financial institutions; the case studies in the agricultural input distribution area and in the large company borrower constituency provide insights into financial market behavior and market linkages that are distinct from the much smaller clientele sampled in the BPD branch and office data. A concluding chapter draws lessons from the study. (Author abstract)