Vusumuzi DubeJudith Phiri, Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has with immediate effect lifted the suspension of lending services by banks.
The suspension of lending by banks was announced two weeks ago by President Mnangagwa in order to minimise the creation of broad money that is prone to abuse for purposes of manipulating the exchange rate for financial gains and to allow current investigations.
In a statement, on Tuesday morning, RBZ Governor Dr John Mangudya confirmed the lifting of the suspension.
“Further to the circular the RBZ (the Bank) issued to banks on 9 May 2022, the Bank wishes to advise the public that the temporary suspension of lending services by banks has been lifted with immediate effect,” he said.
“The lifting of the suspension does not apply to those entities that are under investigation by the Financial Intelligence Unit (FIU) for abusing loan facilities to the detriment of the economy. The FIU has accordingly advised all banks of the affected entities.”
Last week, Dr Mangudya said the temporary suspension was a necessary inconvenience in their quest to establish the cause of the current exchange rate volatility and attendant rising inflation.
He said those that were critical of the move did not appreciate the fact that some companies were borrowing funds and offloading them on the parallel market.
Online Reporter