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Bianca Mlilo, Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) is working on establishing a credit collateral registry system to allow small to medium enterprises (SMEs) and cooperatives to access funding without using immovable assets as collateral.
An official from the central bank revealed this at a two-day consultative workshop held in Bulawayo by the Ministry of Small to Medium Enterprises and Cooperative Development on Tuesday.
SMEs continue to face difficulties in accessing funding as financial institutions demand collateral in the form of immovable property like houses.
“The Reserve Bank is in the process of creating a credit collateral registry system where one can make use of their inventory, vehicles and receivables to access funding,” said the official who declined to be named.
“This facility will be in place by the end of the year so that cooperatives can access funding without collateral.”
The banking sector has been accused of imposing stringent conditions for businesses who need funding.
One of the participants said women were treated unfairly in accessing loans especially with reference to title deeds most of which are registered in their spouses’ names.
Some demanded that the government comes up with a guarantee scheme for cooperatives to cushion them in the event of the collapse of banks.
Online Reporter