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RBZ Says Medium-Term Lending Facility For SMEs, Individuals To Increase To ZW$20 billion

RBZ Says Medium-Term Lending Facility For SMEs, Individuals To Increase To ZW$20 billion

Reserve Bank of Zimbabwe Governor, John Mangudya has announced that the Medium-Term Lending Facility for micro, small and medium enterprises, individuals and the productive sectors will be increased in 2023 from the current limit of ZW$10 billion to ZW$20 billion. 

He made the remarks in a statement announcing resolutions of the Monetary Policy Committee Meeting held on the 2nd of December 2022. Read the statement seen by Pindula News:

RESOLUTIONS OF THE MONETARY POLICY COMMITTEE MEETING HELD ON 2 DECEMBER 2022

The Monetary Policy Committee (the Committee) of the Reserve Bank of Zimbabwe (the Bank) met on 2 December 2022 to discuss the macroeconomic and financial developments in the economy and their implications on monetary policy as well as the general economic outlook.

The Committee expressed satisfaction with the positive impact of the recent policy measures on macroeconomic stability and economic performance and noted the need to sustain the gains realized so far. The Committee also noted the progressive decline in monthly inflation, from a peak of 30.7% in June 2022 to 1.8% in November 2022, which has seen annual inflation falling from 285% in August 2022 to 255% in November 2022.

The Committee was pleased with the improved business confidence owing to the prevailing stability in the economy. Against that background, the Committee unanimously agreed to stay the course of a tight monetary policy until the first quarter of next year and resolved as follows:

i. to maintain the Bank policy rate and medium-term lending rate at current levels of 200% and 100%, respectively, and to review the interest rates in the first quarter of 2023 as dictated by inflation developments;

ii. to further liberalise the foreign exchange market in the first quarter of 2023 and to enhance efficiency in the operation of the foreign exchange auction system and the willing-buyer willing-seller foreign exchange mechanism;

iii. to continue supporting the productive sectors of the economy through the Medium-Term Lending Facility (which the Bank will increase in 2023 from the current limit of ZW$10 billion to ZW$20 billion) under which micro, small and medium enterprises, individuals and the productive sectors of the economy can borrow at interest rates applicable from time to time; and

iv. to review the foreign currency retention thresholds on exports and domestic FCAs during the first quarter of 2023 in line with improved efficiency of the foreign exchange trading systems in order to sustain the current growth trajectory in foreign currency receipts.

The Committee expressed satisfaction with the continued close coordination of fiscal and monetary policies in stabilising the economy and noted that this was a necessary precondition for sustaining the current disinflationary process and a bedrock for sustainable growth of the economy. The Committee expects that the economy will grow by 4% in 2023 and that inflation will remain stable at below 3% per month throughout the year.

John P Mangudya

Governor 

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11 Comments

Totito 1 month ago

Ma Billion aya adzokazve, kwasara ma Bearer check acho. ✊ Ichooo Charira, Kupi , muZimbabwe.


Tang ku 1 month ago

This thing called Rbz lending Facility has been said too. Long but without a zanupf card as collateral you can never access it ,it reflects the fact that zanupf contros it such to
moblise voters


VYBZ KARTEL 1 month ago

Have you ever asked and been denied credit instead of coming here and spreading pessimistic ideologies

Vesto 1 month ago

@VYBZ Ketero, who in their right frame of mind would borrow at 200% interest? And what markup will sustain such a business - unless you're doing drugs, or gold?

Even well established businesses are changing their loan books to USDollar denominated debt to avoid debt trap.

Business optimism is at its lowest. It is only Delish Nguwaya of Pomona Rubbish Good bring paid US$22,000 per day who is optimistic in Zimbabwe as we speak

Dofo 1 month ago

Celebrating kuti inflation is at 255%😂😂 zvakaoma


Vesto 1 month ago

Under normal circumstances lending to business is the function of commercial merchant banks. The role and function of A Central Bank is to maintain value of the currency.

RBZ, having failed in its mandate is now crowding out primary and secondary banks.
Biti was right. RBZ should be disbanded. It's not adding value


1 month ago

All this economic jargon for a layman like me...went through the article twice and got more confused but what I know is that nothing they are saying there has changed my life for the better because my daily life struggles continue


King 1 month ago

rtgs loan repayment is painful, given 200% interest rate


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1 month ago

At 200% interested p.a who will borrow?


Tshilidzi 1 month ago

@Vesto - I guess what we can only celebrate is the month on month inflation which have gone down. Otherwise the Year on Year inflation is still too high for us to count it as an achievement. Only fools do that to their own demise. Ministry of Finance continue working & we'll talk when you're in single digits as regards inflation 😂😂😂


Youth Isiri YeZanu 1 month ago

@VYBZ KARTEL you just try hiding from the truth that you yourself know very well that this so called loan facility is a Zanu pf thing. An ordinary person will be deliberately frustrated by being refered from one office to another and a pile of useless demands.



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