RBZ lifts suspension of lending by banks

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The Reserve Bank of Zimbabwe has announced that the temporary suspension of lending by banks has been lifted with immediate effect. In a statement, seen by Zimbabwe Observer, the central bank’s governor, Dr John Panonetsa Mangudya said the suspension remains in effect for entities under investigation for abusing loan facilities.

Zimbabwe Observer presents Mangudya’s statement below:

UPLIFTMENT OF TEMPORARY SUSPENSION OF LENDING BY BANKS

Further to the circular the Reserve Bank of Zimbabwe (the Bank) issued to banks on 9 May 2022, the Bank wishes to advise the public that the temporary suspension of lending services by banks has been lifted with immediate effect.

The lifting of the suspension does not apply to those entities that are under investigation by the Financial Intelligence Unit (FIU) for abusing loan facilities to the detriment of the economy. The FIU has accordingly advised all banks of the affected entities.

John P Mangudya Governor

The suspension of the lending facility was heavily criticised by analysts who said it would worsen an already dire economic crisis.

Local companies also criticised the move saying they would not have the capacity to keep their businesses running and would not be able to compete with importers or multinational companies.

Some basic commodities including cooking oil and sugar had already started disappearing from some shops with owners attributing the “disappearance” to the latest measures.

Finance and Economic Development Minister Mthuli Ncube had said the ban on bank lending announced by President Mnangagwa last weekend was aimed at combating indiscipline in the financial services sector driving inflation and weakening the local currency.