The Reserve Bank of Zimbabwe has announced that the temporary suspension of lending by banks has been lifted with immediate effect. The central bank’s governor, Dr John Panonetsa Mangudya said the suspension remains in effect for entities under investigation for abusing loan facilities.
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.
In other news – MPs team up against Mthuli Ncube
The legislators expressed their frustrations over the measures after Finance and Economic Development Minister Mthuli Ncube presented his state of the economy address in the National Assembly where he defended the interventions.
Former finance minister and Harare East legislator Tendai Biti (CCC) said that the ban on bank lending was unconstitutional. Biti said. Learn more