Breaking News

Gono lends his support to Kasukuwere

by Staff reporter
01 February 2013 | 4264 Views
RESERVE Bank governor Gideon Gono yesterday made a dramatic about-turn on the country's drive to indigenise the financial sector, lending his support to Indigenisation and Economic Empowerment minister Saviour Kasukuwere with whom he had been openly sparring over the issue.

Announcing his monetary policy statement for 2013 in the capital yesterday, Gono, who previously had been adamant the banking sector was a sacred cow that should not have been included in the ongoing radical transfer of economic power into the hands of the black majority,  showed he had yielded to the political pressure he has been facing from Zanu PF, which has been having an upper hand in the unity government.

"All banks should observe the laws of the country including the Indigenisation and Economic Empowerment laws. In this regard, the Reserve Bank is working together with the Ministry of Indigenisation and Economic Empowerment to ensure that compliance with appropriate laws is done in an orderly manner," Gono said yesterday.

He however stressed that the process to indigenise the banks should take cognisance of the sensitivities around the operation of the banks to restore confidence, trust and stability in the sector.

Nonetheless, the governor could be taking his last stand by demanding that all indigenisation transactions that involved notion vendor finance for the new black shareholders obtain his approval.

The  transactions, which have been dubbed successful by some sections of the financial markets, could be in danger of being labelled null and void if Gono disapproves of them in the interests of curtailing further national debt.

The country's Indigenisation Act compels foreign owned firms to sell 51% of their stakes to local entities. In the absence of credit lines willing to fund the sale of the stakes, the companies and the ministry of Indigenisation have an agreement that the stakes would be sold through notional vendor financing (NVF).

NVF is credit provided by the supplier, normallly in the form of deferred payment terms, usually over 10 years or so. This means indigenous entities contracted commercial debt from the companies which they have now taken over.

However, Gono said there were laid down procedures in the contraction of credit lines which strictly requires the approval of  the External Loans Coordination Committee.

The contraction of credit lines and loans in Zimbabwe are undertaken through the ELCC as it has been empowered by government to use stipulated guidelines in debt contraction with a view to monitoring the country's indebtedness to the rest of the world.

Gono noted there had been incidents where credit lines were contracted on behalf of government outside the purview of the ELCC or involvement of the RBZ.

"Against this background all institutions, both in the private and public sectors, need to send their loan applications through the ELCC for prior approval."

Gono said this applied to various vendor financing schemes that had emerged over the recent past Zimbabwe Independent is reliably informed that Gono is currently in the process of granting ECCL approval to the transactions in the same as he had already approved that of Blanket Mine.

Blanket Mine was the first company to receive an indigenisation compliance certificate.


Gono Kasukuwere

Source: independent

Could there be war if Grace Mugabe becomes President?

Yes
74.24%
No
9.12%
Who cares?
16.64%
625

Comments

Latest Classifieds (Click Here For More)

News Updates

Email:

Latest News

Mugabe wants to quit says Zambia's new president

by Staff Reporter | 31 October 2014 | 3032 Views

Pastor caught engaging bonking policeman's wife in a car - Married Met...

by Staff reporter | 31 October 2014 | 2915 Views

Reasons why Grace Mugabe attacked Joice Mujuru - Ongoing attempts to e...

by Staff reporter | 31 October 2014 | 3138 Views

Mujuru camp hits back - The Zanu-PF Secretary for Information and Publ...

by Staff reporter | 31 October 2014 | 3266 Views

Thomas Mapfumo not dead - The social media was abuzz on Friday with ...

by Staff Reporter | 31 October 2014 | 2462 Views

Jabulani Sibanda's bedroom coup jab at Mugabe haunts him - The founder...

by Staff reporter | 31 October 2014 | 1563 Views

Sibanda bedroom coup jab at Mugabe was more potent than Ali's left hoo...

by Wilbert Mukori | 31 October 2014 | 4200 Views

Rude awakening for judge aspirant - A former High Court Registrar and ...

by Staff reporter | 31 October 2014 | 2571 Views

Mugabe and friends need to know we will change history narrative - Th...

by Shingai Mugochi | 31 October 2014 | 2934 Views

Gideon Gono to takeover re-branded Zanu-PF?

by Nancy Mabaya | 31 October 2014 | 4355 Views

Inside Mugabe's sealed succession envelope: Fear, self assassinations ...

by Dinizulu Mbikokayise Macaphulana | 31 October 2014 | 4076 Views

When even the gullible can no longer be fooled - The west has once mor...

by Tafara Shumba | 31 October 2014 | 1053 Views

Tsvangirai's wife refuses to be called Dr Macheka - Morgan Tsvangirai'...

by Staff reporter | 31 October 2014 | 7009 Views

Image battered Tsvangirai faces the daunting task of reuniting the par...

by Prince Tongogara | 31 October 2014 | 1903 Views

MDC-T Congress - Live updates - Below are live updates of the Morgan ...

by Staff reporter | 31 October 2014 | 3936 Views

Senzo Meyiwa suspect arrested at Beitbridge border post - A suspect in...

by City Press | 31 October 2014 | 5397 Views

'Mugabe strong armed by the Chinese to support Mnangagwa': Report - T...

by Staff Reporter | 31 October 2014 | 6506 Views

Mujuru's lawyers speak out - Musunga and Associates law firm said it c...

by Staff reporter | 31 October 2014 | 5648 Views

Woman drags young sister to court for sleeping with her hubby

by Staff reporter | 31 October 2014 | 4358 Views

Man commits suicide after girlfriends clash at his place

by Court Reporter | 31 October 2014 | 3998 Views

Mujuru on the ropes as Mugabe says Grace has right to be in politics -...

by Staff reporter | 31 October 2014 | 2700 Views

Mujuru, Mnangagwa to be probed - President Robert Mugabe will soon set...

by Staff reporter | 31 October 2014 | 4382 Views

Thousands demand Mujuru's resignation - Scores of Zanu-PF supporters y...

by Staff reporter | 31 October 2014 | 2232 Views

Zanu PF divisions reach boiling point, Gwanetsa fired

by Staff Reporter | 31 October 2014 | 2925 Views

Entertainment

Our hands are clean, says DJ Munya

by Court reporter | 31 October 2014 | 2395 Views

Oliver Mtukudzi to get 'real' PhD - ICONIC musician Oliver Mtukudzi is...

by Staff reporte | 30 October 2014 | 3105 Views

Zimbabwe's JJ survives Big Brother Africa eviction... again - Zimbabw...

by Staff reporter | 27 October 2014 | 2217 Views

Carl Joshua Ncube to star in game show - Comedian Carl Joshua Ncube wi...

by Staff reporter | 23 October 2014 | 1637 Views

LadyBee Anondida - Official video

by Staff Reporter | 23 October 2014 | 4329 Views

Zim representative in the Big Brother Africa survives eviction - Zimba...

by Staff reporter | 20 October 2014 | 3587 Views
iBlog

Advanced Systemcare Free To Optimize The Os Still Support Xp

the update systemcare free 7.3.0.456 (a set of tools to optimize the operating system) – now available.advanced systemcare is a free package to optimize, tweak, fix bugs and improve the overall performance of the operating system.the program anal... Read More
ITnews 02 June 2014 ago

Positions To Make Female Orgasm Easier During Intercourse

some women are fortunate enough to be able to climax easily, and in almost any sexual position. the majority of women though, sometimes find it difficult to orgasm especially when they are with a partner. sometimes this difficulty is just a result ... Read More
adoniadennis 12 May 2014 ago