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Addressing participants during a pre-budget stakeholder consultative meeting in Bulawayo on Thursday Minister Biti said the Government would not tolerate the behaviour of banks.
“The bank charges in this country are outrageous. We cannot allow a situation where a client leaves his money in the bank and after three weeks it is no longer there. Fifty-five percent of the income from our banks is from non-interest rates and that is not banking,” said Minister Biti.
“I think our banks have been watching too many Nigerian movies. The banking sector must stop its voodoo practices of cheating people. As a Government, we are taking measures to curb that and in the next few weeks we will announce the policy steps to be taken.”
Minister Biti said it was shocking that the banking sector, despite enjoying friendly business environment in the country, were refusing to partner with Government in financing key development projects.
“We have a serious attitude problem from our banks. As we speak, the big banks, Standard Chartered, Barclays and Stanbic banks refused to subscribe to the Treasury bills. This attitude from the banks is regrettable.
“Instead of piling all the pressure on Government, we want the financial institutions to be our partners. They should avail lines of credit. It is only in Zimbabwe where the Government alone is expected to bear all the burden of financing development,” he said.
Minister Biti said concerted efforts were needed to service the country’s debt to the International Monetary Fund (IMF) in order to obtain lines of credit and foreign direct investment.
He said the IMF has indicated that $75 billion would be availed for African countries but said Zimbabwe was not eligible to benefit from the funds because it already owed an outstanding $10 billion to the institution.
Last week, President Mugabe took a swipe at the foreign-owned banks for their refusal to finance agriculture, which is the backbone of the country’s economy.
Online Reporter