Breaking News

Gono lends his support to Kasukuwere

by Staff reporter
01 February 2013 | 4255 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
75.61%
No
8.94%
Who cares?
15.45%
246

Comments

Latest Classifieds (Click Here For More)

News Updates

Email:

Latest News

Mnangagwa escapes death by a whisker

by Staff Reporter | 23 October 2014 | 747 Views

Woman launches new political party - A NEW political party, the Afric...

by Staff Reporter | 22 October 2014 | 1021 Views

Tillage starts at a slow pace

by Staff Reporter | 22 October 2014 | 862 Views

Salaries dominate govt expenditure - Public sector salaries continue t...

by Staff Reporter | 22 October 2014 | 1360 Views

Gun shot in Canada parliament building - Video

by Staff Reporter | 22 October 2014 | 1246 Views

Veld fires kill nine people

by Staff Reporter | 22 October 2014 | 1691 Views

Man threatens to kill dad over money from rent - A disobedient son wen...

by Staff Reporter | 22 October 2014 | 1759 Views

Dr Simba Makoni Leave Dr Grace Mugabe Alone

by Suitable Kajau | 22 October 2014 | 4241 Views

Msipa demanding answers from Mugabe - HARARE - Respected Zanu PF elder...

by Staff Reporter | 22 October 2014 | 4508 Views

'Grace Mugabe a liar' - HARARE - Opposition leader Simba Makoni has br...

by Staff Reporter | 22 October 2014 | 2916 Views

State must have nothing to fear - Dzamara - Over 150 people today turn...

by Itai Dzamara | 22 October 2014 | 2557 Views

'I saw a vision of me ruling the heavenly kingdom' says Grace Mugabe

by Staff Reporter | 22 October 2014 | 4403 Views

Woman says she steals for a living, Magistrate left speechless

by Leonard Ncube | 22 October 2014 | 2441 Views

Cyclist kills pedestrian - A cyclist has been fined $400 for hitting a...

by Staff Reporter | 22 October 2014 | 1432 Views

Mother of Pistorius's girlfriend insists she did not want 'revenge'

by Staff Reporter | 22 October 2014 | 1686 Views

Uniting the Ndebele People - The Mzilikazi Cultural Association, MCA i...

by Mzilikazi Cultural Association | 22 October 2014 | 1502 Views

'Insecure' man locks wife in bedroom until he returns from work

by Staff Reporter | 22 October 2014 | 3652 Views

Wrong Ndebele spellings in Coca-Cola Ads - After launching its "Share...

by Staff Reporter | 22 October 2014 | 3709 Views

Duo arrested for sodomising boy (10) - A 10-year-old boy has allegedly...

by Staff Reporter | 22 October 2014 | 1951 Views

Update from Africa Unity Square - Live Update - This live update is fr...

by Africa Unity Square | 22 October 2014 | 5167 Views

BREAKING: Cops in riot gear chase people from Africa Unity Square

by Concerned Citizen | 22 October 2014 | 5761 Views

Dr Grace Mugabe's tours breathes hope

by Tawanda Museve | 22 October 2014 | 3384 Views

Matebeleland pressure group - cum political party takes Zanu PF war to...

by Tongai Zwayisa | 22 October 2014 | 3080 Views

Power cuts disrupt Sadc conference in Vic Falls

by Staff Reporter | 22 October 2014 | 1647 Views

Ebola vaccine trials in West Africa by January says WHO

by Staff Reporter | 22 October 2014 | 885 Views

Zimbabwean woman and her 3 children die in horrific car crash in Austr...

by Staff Reporter | 22 October 2014 | 3054 Views

Hail Dr Grace Mugabe

by Tawanda Museve | 22 October 2014 | 3286 Views

Wednesday chat with Auntie Noe - Love and Jealousy

by Nobuhle Virgie | 22 October 2014 | 2024 Views

Entertainment

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

by Staff reporter | 20 October 2014 | 2312 Views

Grace Mugabe's political comedy takes ZTV hostage - For the past two w...

by Staff reporter | 20 October 2014 | 4607 Views

Oliver Mtukudzi to deliver lecture at Musica 2014 - Zimbabwe's interna...

by Staff reporter | 19 October 2014 | 1316 Views

Gezha maoko - Ladybee (Official Video)

by Staff Reporter | 19 October 2014 | 2292 Views

Matebeleland Music & Arts Festival - Sivala umnyaka ngengoma lapho sit...

by Staff Reporter | 17 October 2014 | 1643 Views

Obediah Matulana releases Christmas DVD - Bulawayo-based musician Obed...

by Staff reporter | 16 October 2014 | 1877 Views

Grace Mugabe honoured in song - Dancehall outfit Final Warning has rel...

by Tawanda Marwizi | 15 October 2014 | 2348 Views

US firm makes money off Zimbabwe concept - United States transport sh...

by Staff reporter | 14 October 2014 | 2948 Views
iBlog