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Banks to revive long term loans

Zimbabwe’s financial sector will soon revive long term loans for industry as the central bank is finalising affordable offshore credit line facilities with regional and global banks.

It emerged at the one week regional meeting on regulatory issues in domestic financial markets, that Zimbabwe’s banks are being overwhelmed by huge demand of loans by industry.

A combination of tight lending conditions, limited cash flows and a cautious approach to lending by local banks has, however, seen uptake of loans by firms being subdued.

Speaking on the sidelines of the meeting Reserve Bank of Zimbabwe Deputy Governor Dr Khuphukile Mlambo said several packages are being finalised to ease the burden of access to cheap finance for productive purposes.

“We are doing our best and we hope to sustain the needs of the industry once all is sealed and concluded in the next few weeks,” said Dr Mlambo.

Several issues relating to the harmonisation of financial markets regulations and laws will be discussed as regional central banks and treasury departments seek to increase efficiency and improve the value and profits for the financial services sector.

SOURCE: ZBC

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