Breaking News

Biti threatens Zimbabwe banks over interest rates

by Business reporter
15 February 2013 | 5414 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In terms of the MoU, bank charges would now be set at a maximum 0,5 percent of cash withdrawn.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

Should Miss World Zimbabwe have been dethroned?

Yes
34.5%
No
60.7%
Not sure
4.8%
229

Comments

News Updates

Email:

Latest News

Chinese national sues Zimbabwean magistrate for being biased - A disgr...

by Staff reporter | 07 July 2015 | 1753 Views

Obert Mpofu reads riot act - Board members who violated corporate gove...

by Staff reporter | 07 July 2015 | 1842 Views

Mugabe, Grace jets off to New York, US - President Robert Mugabe has l...

by Staff reporter | 07 July 2015 | 2968 Views

Zimbabwe Exiles angrily reacts to Malema's praise of Mugabe - The Zimb...

by Staff reporter | 07 July 2015 | 2455 Views

Of Jonathan Moyo and the Cabinet reshuffle - Am sure it is not the sub...

by Richard Mahomva | 07 July 2015 | 3517 Views

Grace Mugabe presidency unlikely - There is no doubt that Grace Mugabe...

by Conrad Nyamutata | 07 July 2015 | 3763 Views

Mugabe obsessed with power retention, says Biti - President Robert Mug...

by Staff reporter | 07 July 2015 | 2452 Views

US Embassy call for NPO proposals - The U.S. Ambassador's Special Sel...

by Machinda Marongwe | 07 July 2015 | 1709 Views

'I am rich but not a Satanist,' says Prophet Magaya - Prophet Walter M...

by Staff Reporter | 07 July 2015 | 4635 Views

'I was pretending to be holy,' says Nicholas Zakaria

by Staff Reporter | 07 July 2015 | 7957 Views

RBZ worker steal worthless Zimdollars

by Thobekile Zhou | 07 July 2015 | 3496 Views

MDC statement on Cabine reshuffle - Yesterday's cabinet reshuffle by P...

by Joshua Mhambi, MDC National Spokesperson | 07 July 2015 | 3453 Views

Kasukuwere tell city fathers that it is no longer business as usual - ...

by Staff reporter | 07 July 2015 | 5821 Views

Is Grace Mugabe's 'bedroom coup' a reality in Zimbabwe? - WHEN former ...

by Dumisani Muleya | 07 July 2015 | 3877 Views

Zimbabwe roads 'not for amateurs' - The state of Zimbabwe's roads is t...

by Marko Phiri I Reuters | 07 July 2015 | 1878 Views

'Shun 'thigh for a pass' culture,' students urged - FEMALE students in...

by Heather Charema | 07 July 2015 | 3243 Views

No problem with bedding under aged girls? - survey - Plan Internationa...

by Thobekile Zhou | 07 July 2015 | 3273 Views

NRZ suspends use of elevators - THE National Railways of Zimbabwe (NRZ...

by Staff reporter | 07 July 2015 | 2455 Views

Mutasa savages 'crazy' minister - Commenting on the farm invasion by M...

by Staff reporter | 07 July 2015 | 4405 Views

Mphoko sold dummy over Hwange equipment - Vice President Phekezela Mph...

by Staff reporter | 07 July 2015 | 2946 Views

1 418 Zimbabwean dead bodies repatriated from SA - A total of 1,418 b...

by Thupeyo Muleya | 07 July 2015 | 5332 Views

Tomana does not serve at Mugabe's pleasure - CONSTITUTIONAL expert Ale...

by Staff reporter | 07 July 2015 | 2407 Views

CIO protected witness from Zanu-PF youths - Theresa Ndambakuwa, a witn...

by Staff reporter | 07 July 2015 | 2770 Views

Cuthbert Dube praise Warriors as Zifa workers petition him

by Thobekile Zhou | 07 July 2015 | 2887 Views

Entertainment

Zim Models Awards nominees list out - The list for the inaugural Zimba...

by Staff reporter | 07 July 2015 | 1218 Views

Bigger and Better Women's Day Gospel Festival

by Entertainment Reporter | 03 July 2015 | 3683 Views

Silence Is Not Peace!, Says Bongani Ncube

by Nkosini Tshuma | 02 July 2015 | 4664 Views

Zimbabweans fail to answer a simple question like who is your former p...

by Staff reporter | 02 July 2015 | 5861 Views

Zim Achievers to host first ever winners and nominees reception - Win...

by Arts Correspondent | 02 July 2015 | 2576 Views

Team Bulawayo UK Shows cancelled - The Team Bulawayo UK shows which we...

by Thulani Nkala | 02 July 2015 | 3057 Views

DStv adds new channel for Zimbabwe viewers

by Staff reporter | 01 July 2015 | 11555 Views

Rihanna Duct Tapes Floyd Mayweather's Mouth Shut at BET Awards

by Staff Reporter | 30 June 2015 | 9745 Views
iBlog

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

Apple Watch Teardown Reveals Unique Hardware And Replaceable Parts

The apple watch may not be fine jewelry, but bill detwiler cracks it open and shows you why he thinks it's a fine piece of tech. the apple watch may be beautiful on the outside, but how about on the inside? in this cracking open installment, we go in... Read More
Sergey 11 June 2015 ago