A regional bank announced loans to Zimbabwean companies
Harare, Zimbabwe – The Bank for Southern Africa, PTA Bank, has announced a series of Business Loan it has granted to companies and banks in Zimbabwe, said here Friday from the regional financial institution.
“With the dollarization of its economy, Zimbabwe is now an attractive candidate for transactions, unlike most African countries where we are still faced with problems of foreign exchange risk,” said regional director of PTA Bank Gift Madlayo.
He said the establishment of dozens of Zimbabwean Payday Loan, including a loan of 57 million U.S. dollars for a local bank to help revive the country’s economy.
Mr. Madlayo also announced a loan of 20 million U.S. dollars for the largest mobile operator in the country, Econet Wireless.
He said Zimbabwe had become a country in which it was interesting to lend money after the government eliminated the foreign exchange risk by abandoning its local currency and replace it with a basket of currencies.
Zimbabwe government has abandoned last year, the Zimbabwean dollar after it was hit by hyperinflation and adopted hard currency, mainly the U.S. dollar. And it also influence Small Personal Loan.
The Zimbabwean economy has shrunk more than 50 percent over the past decade and now a new coalition government attempts to reverse this trend by attracting foreign capital.
But most multilateral donors are insisting that Zimbabwe undertake further reforms before new support him financially.
Mr. Madlayo revealed that his bank attached no conditionality to loans to enterprises in Zimbabwe.
“We are in the process of finalizing several financial projects with local companies,” he said.
