New law to force banks to accept cattle, goats and sheep as collateral for cash loans
Banks in Zimbabwe will soon be forced to accept livestock such as cattle, goats, and sheep as collateral for cash loans to informal businesses. This is under the proposed Movable Property Security Interests Bill tabled for debate by Finance, and Economic Development Minister Patrick Chinamasa in the House of Assembly.
Under the bill, the Reserve Bank of Zimbabwe will compile and administer a collateral-security register in which small-business operators and individuals can register their movable assets as security for credit. The assets include things such as Vehicles, television sets, refrigerators, computers and other household appliances.
As minister in charge of financial institutions, I feel there is need for a change of attitude by our banks to reflect of our economic realities,
[Banks are] stuck in the old ways of doing things and failing to respond to the needs of our highly informalized economy.