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RBZ Clarifies "All Lending Suspended" Directive

RBZ Clarifies

The Reserve Bank of Zimbabwe (RBZ) has written to banks clarifying a recent directive that suspended all lending in Zimbabwe. We present the central banks’ letter to banks:

To: Chief Executive Officers/ Managing Directors All Banking Institutions, Development Finance Institutions, Deposit-Taking and Credit Only microfinance Institutions

RE: NEW MEASURES TO RESTORE CONFIDENCE, PRESERVE VALUE AND RESTORE MACROECONOMIC STABILITY

1. We refer to the National Announcement of 7 May 2022, made by the President of the Republic of Zimbabwe, His Excellency Dr. E. D. Mnangagwa, on Measures to Restore Confidence, Preserve Value and Restore Macroeconomic Stability, and the subsequent meeting of representatives of the banking sector with the Governor held on 9 May 2022.

2. We bring your attention to paragraph 40 of the Presidential Announcement on the suspension of lending by banking institutions, building societies, development finance institutions, deposit-taking and credit-only microfinance institutions to the Government and private sector. For the avoidance of doubt, this suspension relates to all lending, whether local currency or foreign currency, to Government and the private sector, including corporates, other legal entities and individuals.

3. We further confirm that no new credit facilities should be issued as the suspension covers new loans, undrawn portions of agreed facilities, overdrafts and other forms of borrowing instruments, by whatever name they are called.

4. With respect to pipeline transactions, where all the facility terms and conditions have been met before the above pronouncement, institutions may approach the Reserve Bank for consideration, on a case by case basis.

5. Please take note that the suspension of lending does not apply to offshore drawdowns.

6. The Reserve Bank will monitor compliance with the above directive and will take appropriate supervisory action against any non-compliant institutions.

7. We advise accordingly. Yours faithfully

P. T. Madamombe Director, Bank Supervision

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10 Comments

Jinn 2 weeks ago

Nothing tangible can come from these old folks.
Vote CCC for change


Gafa 2 weeks ago

Chozikamwa hapana kuenda kumawere ccontinue yaChimbetu wozodii naiDambudzo Panonetsa Mangundya


Machiavelli 2 weeks ago

.... and you expect people to invest in a country where banks core business is wiped out at the whim of a politician?

..... and you expect anyone to have confidence in your currency when a dictator makes fiscal and monetary statements instead of these being made by the Reserve Bank?

.... and you expect people to bank their Zimkwacha in banks where it loses value every hour?

..... and you expect business to thrive without short and medium term bridging finance from banks?

.... you really expect people to vote for you when you impose a non-performing transport monopoly on them, so it takes them 4 hours to get to work and another 4 hours to get back home?

.... and you really expect productivity from such workforce?

IF YOU DO, then Mr. President, Sir, you are living in cloud-cuckooland. Beware the Ides of March.


Asalif 2 weeks ago

Zimbabwe yananga kumawere when we reach 2023 some people might die of this poverty worst off with the drought civil servants survived by these loans to finance income generating projects


Skirid Rebhara 2 weeks ago

This government has no mercy.. they lifted the ban on kombis and shifted it to financial institutions meaning kut hatichakwanise kutora maloans or over drafts to cover medical expences, kutenga mastands or start doing ma projects...apa salary inokwanisa kukuchengeta for only two weeks at most...Zim munin'ina weGehena.

Guys if you think we are somewhere tikuzvinyepera things to be worst than they are at the moment.


StoreKeeper 2 weeks ago

Sorry Integrity and Intelligence are out of stock.
New stock on order through yellow route 2023.


Machiavelli 2 weeks ago

Ginyanomics @work.

"You can rig elections;
You can rape the Judiciary; but
You cannot rig the economy"

Biti how right you were.
The end is nigh- zvaakuibva manje


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Jorijo 2 weeks ago

Tamama


Jah🇿🇼Tsvarie-07 2 weeks ago

RBZ to monitor yet it is the main cause of this mess, parallel market money comes from RBZ...


Observer 2 weeks ago

" Open 4 business " is just an illusion like freedom. The abuse of power is destructive.



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