adminSTATE-owned Agribank is negotiating two credit lines from African Export and Import Bank (AFREXIM) bank and Preferential Trade Area (PTA) bank with a conjoined value of US$80 million.
In an interview, Agribank chief executive Mr Sam Malaba said the credit facilities would go a long way in easing the liquidity constraints in the financial services sector and in the process boost the economy as a whole.
“We are talking to regional development financial institutions for credit lines; we have made applications to AFREXIM bank and PTA bank. Discussions are still ongoing with both regional institutions but we are expecting US$30 million to US$50 million from AFREXIM bank, and US$20 million to US$50 million from PTA bank,” he said.
Mr Malaba said the US$48 million Industrial Development Corporation of South Africa (IDC-SA) facility was progressing well.
“In addition to the two facilities that we are working on, we still have the IDC-SA facility which is still ongoing. To date we have drawn down the first US$30 million, we are now drawing the second tranche of US$18 million,” he said.
Agribank used the first tranche of the facility to lend to its blue chip and medium-sized clients, some of which are listed on the local bourse, with the objective of increasing production capacity.
US$20 million of the facility was allocated to firms operating in the agri-business, manufacturing and mining sectors. US$10 million was lent to IDC Zimbabwe to help boost its operations. — FinX.
Online Reporter