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RBZ: "Suspension Of Lending Facilities Does Not Apply To Marketable Commodities"

RBZ: "Suspension Of Lending Facilities Does Not Apply To Marketable Commodities"

The Reserve Bank of Zimbabwe (RBZ) has said the suspension of lending facilities does not apply to marketable commodities such as tobacco, maize and sugar.

On 7 May 2022, President Emmerson Mnangagwa announced in his State of the Nation Address (SONA) the suspension of lending by banking institutions, building societies, development finance institutions, deposit-taking and credit-only microfinance institutions to the Government and private sector

Banning lending facilities is one of the measures that the government introduced to restore confidence, preserve value and restore macroeconomic stability.

The announcement triggered outrage with the public saying they were no longer able to carry out their projects such as farming. The central bank clarified:

Suspension of lending facilities does not apply to marketable commodities such as tobacco, cotton, sugar, maize, etc. All banks have been advised accordingly.

All banks have been advised as was previously advised by RBZ on Monday 9 May 2022.

The RBZ also noted that the suspension of lending does not apply to offshore drawdowns.

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