Breaking News

Biti threatens Zimbabwe banks over interest rates

by Business reporter
15 February 2013 | 3326 Views
Government will codify into law the Memorandum of Understanding between the Reserve Bank of Zimbabwe and banks if the agreement is not fully implemented, Finance Minister Tendai Biti has said.

The framework agreement on interest rates, bank charges and interest on prescribed amounts held in call accounts for a given period would be assessed after six months from last month.

"We are monitoring implementation of the agreement closely. If there is no sufficient implementation of the MoU we will codify it into law. This is what they (RBZ and banks) agreed on," said the minister.

Minister Biti made the remarks in an interview following his official opening of the two-day Committee of Sadc Stock Exchanges meeting being hosted by the Zimbabwe Stock Exchange yesterday.

The RBZ agreed with banks to set lending rates at not more than 12,5 percent per annum. Fiscal and monetary policy authorities intervened following concerns punitive rates were hurting industry and individuals alike. Before the MoU, banks had been charging between 7 percent and 30 percent on loans per annum.

In terms of the MoU, bank charges would now be set at a maximum 0,5 percent of cash withdrawn.

Banking institutions used to levy the banking public a minimum of US$2,50 per cash withdrawal transaction.

Further, the agreement stipulates that all amounts above US$1 000 held in a call account for more than a month should attract interest of at least 4 percent per annum. Prior to this most banks did not offer such interest.

Minister Biti was speaking at the CoSSE meeting organised by regional stock exchanges to share experiences and insights on various aspects of the bourses' operations with a view to better the way they work.

"The stock market has become a significant component of the financial sector and resource mobilisation for the corporate world. There is a great demand for long-term growth capital in Africa and as Sadc stock exchanges, I challenge you to seize this opportunity to harness savings from both the region and foreign sources," he said.

He called on CoSSE members to address issues of technology, access to information, availability of data and harmonise rules and urged the members to continue working against perceived country risks and enhance access to information thereby reducing transaction costs and world-class regulatory standards.

The Finance Minister said attracting foreign capital was not the work of CoSSE members alone, as Government policymakers were also expected to create an enabling environment.

This was critical for countries like Zimbabwe which requires about US$14 billion for key infrastructure such as Hwange Thermal Power Station (US$1 billion), Batoka hydropower project and roads (US$4 billion). He said manufacturing and mining sectors required about US$4 billion and US$7 billion, respectively.

Minister Biti said that more foreign capital was required for dams and irrigation infrastructure.

Biti Banks Threaten

Source: TH


News Updates


Latest News

Manheru latch on liberation war credential bull to give Mugabe elector...

by Wilbert Mukori | 29 November 2015 | 934 Views

Harare Darts Season ends - Best players rewarded

by Collen Maenda | 29 November 2015 | 401 Views

Buffalo Range airport refurbished - Buffalo Range airport terminal in ...

by Staff reporter | 29 November 2015 | 1043 Views

Baboon skull wrecks family - The subject of black magic and evil pow...

by Staff reporter | 29 November 2015 | 1725 Views

Zimbabwe's budget less than half the annual turnover of Shoprite - The...

by Zimbabwe Vigil Diary | 29 November 2015 | 1619 Views

Teenagers caused accident which killed 15 people - Three boys from Mud...

by Staff reporter | 29 November 2015 | 3807 Views

Skyz Metro FM to launch in January - Skyz Metro FM, which was licensed...

by Staff reporter | 29 November 2015 | 961 Views

Bev's wicked dance act scoops R25,000 in SA competition

by Staff reporter | 29 November 2015 | 2485 Views

'Grace Mugabe wants to secure future' - First Lady Grace Mugabe's grow...

by Staff reporter | 29 November 2015 | 1988 Views

Chief, war vets throw weight behind 11 besieged white farmers - Chief ...

by Staff reporter | 29 November 2015 | 2187 Views

Reverend rubbishes sodomy claims - Assemblies of Pentecostal Methodist...

by Staff reporter | 29 November 2015 | 1016 Views

There is no war with war veterans - I found it of grave importance to ...

by Ministry of Truth with Cde Jason Zhuwao | 29 November 2015 | 1063 Views

Inyanga jailed 14 years for raping five year old kids infecting them w...

by Stephen Jakes | 29 November 2015 | 1504 Views

ZEC sets 30 polling stations for Nkulumane by elections - The Zimbabwe...

by Stephen Jakes | 29 November 2015 | 749 Views

CAAZ embarks on recruitment drive - The Civil Aviation Authority of Z...

by Stephen Jakes | 29 November 2015 | 1580 Views

Mpilo to dispose property on December 4 - Mpilo Hospital which is cur...

by Stephen Jakes | 29 November 2015 | 1296 Views

ZMC calls for renewal of mass media services certifacates and journali...

by Stephen Jakes | 29 November 2015 | 636 Views

Zimbabwe insurance firms accused of robbing policy holders - PENSION a...

by Staff reporter | 29 November 2015 | 1335 Views

Inmate rapes, kills jail guard - A prisoner at a Hurungwe prison in Ma...

by Staff reporter | 29 November 2015 | 3222 Views

Zanu-PF MP wants birth control for men - Shamva South MP, Joseph Mapik...

by Staff reporter | 29 November 2015 | 1226 Views

Chinamasa's national budget a damp squib- MDC -  The MDC has dis...

by Stephen Jakes | 29 November 2015 | 684 Views

Tuku, Zahara divide Harare - THIS week, two high profile South Africa...

by Staff reporter | 29 November 2015 | 1447 Views

Who are the Soccer Stars? - CONTROVERSY and the Soccer Stars of the Ye...

by Langton Nyakwenda & Ishemunyoro Chingwere | 29 November 2015 | 1304 Views

Bulawayo mayor to commission solar traffic lights - Bulawayo Mayor Mar...

by Stephen Jakes | 29 November 2015 | 983 Views

Spurned man demands lobola back - A DISGRUNTLED Bulawayo man who could...

by Lungile Tshuma | 29 November 2015 | 1455 Views

Second-hand car import volumes plummet - SECOND-HAND motor vehicle imp...

by Staff reporter | 29 November 2015 | 1939 Views

Driving licence tests high failure rate torches storm - AN alarming nu...

by Staff reporter | 29 November 2015 | 2218 Views

Visually impaired prosecutor cries foul - THE traditional symbol of ju...

by Richard Muponde | 29 November 2015 | 865 Views

Zanu-PF goes overdrive to claim Nkulumane seat - THE Zanu-PF campaign ...

by Staff reporter | 29 November 2015 | 636 Views

Accused's mum hurls insults at court officials - A WOMAN went berserk ...

by Fairness Moyana | 29 November 2015 | 895 Views


DJ Sticha produced a scintillating hit track for Team Bulawayo

by Stephen Jakes | 29 November 2015 | 947 Views

Bob Marley family confront Zimbabwe Music Awards

by Bongani Ndlovu | 25 November 2015 | 4717 Views

WATCH: Late Night show's analysis of Zanu-PF factional battles - LATE ...

by Staff reporter | 24 November 2015 | 3046 Views

Pregnancy won't stop me from flying, says Sandra Ndebele

by Bongani Ndlovu | 24 November 2015 | 4699 Views

Frustrated Hosiah Chipanga dumps Zimbabwe

by Staff Reporter | 24 November 2015 | 5913 Views

Miss Rural Goromonzi Crowned - It was a day to remember for the Goromo...

by Stephen Jakes | 24 November 2015 | 1902 Views

Heavily pregnant Sandy delays flight for an hour

by Staff reporter | 23 November 2015 | 8637 Views

What To Look For In Video Converter Software

looking for the best video converter software? you have to compare different video converters before making a purchase.the ability to watch video on different types of devices is a wonderful thing. not so wonderful are the compatibility issues that ... Read More
Sergey 19 June 2015 ago

Mobile Spy Software Maker Mspy Hacked

mspy, the makers of a software-as-a-service product that claims to help more than two million people spy on the mobile devices of their kids and partners, to have been massively hacked. a public relations pitch from mspy to krebsonsecurity in march ... Read More
SecNews 17 May 2015 ago