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Michael Tome Business Reporter
The Reserve Bank of Zimbabwe is in the process of setting up a collateral registry in line with the Movable Property Security Act which was recently signed into law by President Robert Mugabe.
Speaking at the Cross Border Association feedback and gratitude meeting held in Harare last Friday, RBZ deputy governor Dr Jesimeni Chipika said the apex bank was ready to implement the law.
“We are in the process of setting up a collateral registry, so that people can come forward with movable property such as cattle, vehicles and house property as collateral,” she said, adding the move was aimed at widening access to financial support for the generality of Zimbabweans.
“We have only been waiting for the law. We have gone around the world to countries that have setup collateral registries looking for good examples we can follow while waiting for the lawmakers to approve the law. Now that the President signed the Bill into law, we are ready to go,” Dr Chipika said.
Meanwhile, in an interview on the sidelines of the meeting, Homelink lending manager Paradzai Berere said cross border traders have accessed $500 000 of the $15 million loan facility, which is being offered at 1 percent interest rate.
“The uptake of the loan facility was slow at the beginning, because people had no confidence but through continuous engagement the uptake of the loan is growing, and we are now approaching $500 000,” said Mr Berere.
“The first cross border traders to access the funds have set a good record by paying back the loans in time. We are considering to raise the amount of loans extended to them,” he said.
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