Zimbabwe: Barclays to raise $100 million to support local businesses
Barclay's Bank Zimbabwe said it will raise $100 million (€73.4 million) offshore loans by the end of June to support the recovery of local businesses.Barclay's Bank Zimbabwe said it will raise $100 million (€73.4
million) offshore loans by the end of June to support
recovery of local businesses.
Managing Director, George Guvamatanga told investors in a conference in Harare last week that business recovery was key towards the
sustainable growth of the economy, New Zimbabwe reports.
He added that the economic landscape in Zimbabwe required significant decisive interventions to enhance investor confidence and promote local production.
"Clarity on key policies that foreign investors consider is critical," he said, adding that the bank wants to sustain growth in the loan book and off shore lines of credit to improve the economic landscape.
current run rate, the bank would close the year at lower than planned loan and deposit levels," he concluded.
According to the 2014 African Economic Outlook report, the country's financial sector continues to experience structural vulnerabilities arising from the lack of confidence by depositors, liquidity constraints, rising non-performing and insider loans, high lending rates and low deposit rates, the absence of an active inter-bank market and the lack of an effective lender of last resort.
The report also states that the recent directive by the government to cancel local authorities’ and the Zimbabwe Electricity Supply Authority’s debts left the banking sector heavily exposed.