Gono lends his support to Kasukuwere
01 February 2013 | 4340 Views
- Gono's senatorial hopes dealt a mortal blow | 27 February 2015
- Gono fails to pay $1.3 million debt | 26 February 2015
- Zanu-PF will not be blackmailed, says Kasukuwere | 24 February 2015
- American soldiers singing at Gono's farm | 15 February 2015
- Kasukuwere wants 'endless' mandate for Mugabe to rule Zimbabwe | 09 February 2015
- 'Mugabe a God-given leader,' says Tyson | 08 February 2015
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.
Most Read Stories
- Married Zim woman stuck to Nigerian man after illicit s*x | 88922 views
- VP Mnangagwa finally succeeds Robert Mugabe - Report | 33243 views
- Mnangagwa bodyguard found dead after heated meeting with the VP | 31633 views
- Nigerian prostitutes to declare three days of free sex if.... | 29744 views
- Mugabe collapse, 27 guards suspended | 27169 views
- Mugabe falling meme goes viral | 25166 views
Staff reporter | 02 March 2015 | 1007 Views
Staff Reporter | 02 March 2015 | 4704 Views
Staff reporter | 02 March 2015 | 3311 Views
Obert Chaurura Gutu | 02 March 2015 | 1419 Views
Fbr Mthokozisi Ndiweni | 02 March 2015 | 1872 Views
Kurauone Chihwayi | 02 March 2015 | 1856 Views
Wilbert Mukori | 02 March 2015 | 2444 Views
Staff reporter | 02 March 2015 | 1116 Views
Staff reporter | 02 March 2015 | 2880 Views
Sapa | 02 March 2015 | 2258 Views
encomium | 02 March 2015 | 4334 Views
Staff reporter | 02 March 2015 | 4216 Views
Staff reporter | 02 March 2015 | 3361 Views
Staff reporter | 02 March 2015 | 4229 Views
Staff reporter | 02 March 2015 | 4091 Views
Staff reporter | 02 March 2015 | 6187 Views
chronicle editorial | 02 March 2015 | 5138 Views
Suitable Kajau | 02 March 2015 | 4062 Views
Prince Khumbulani Malinga | 02 March 2015 | 1419 Views
Staff reporter | 02 March 2015 | 6212 Views
Staff reporter | 02 March 2015 | 1565 Views
Grace Chingoma | 02 March 2015 | 2277 Views
Staff reporter | 02 March 2015 | 5659 Views
Patrick Guramatunhu | 02 March 2015 | 3473 Views
Staff reporter | 02 March 2015 | 2353 Views
Staff reporter | 02 March 2015 | 1064 Views
Staff reporter | 02 March 2015 | 1178 Views
Staff reporter | 02 March 2015 | 957 Views
Staff reporter | 02 March 2015 | 4608 Views
Staff reporter | 02 March 2015 | 5195 Views
Mafu Sithabile | 02 March 2015 | 1501 Views
Liberty Dube | 27 February 2015 | 3500 Views
TMZ | 21 February 2015 | 6488 Views
Staff reporter | 21 February 2015 | 1912 Views
Staff reporter | 20 February 2015 | 10433 Views
Entertainment Reporter | 20 February 2015 | 3353 Views
BlackAmericaWeb | 19 February 2015 | 7090 Views
Sapa | 19 February 2015 | 4832 Views