CBZ gets relief from US treasury

By ZBC Reporter
ZIMBABWE’s biggest bank by asset base, CBZ Bank, can now freely do business with international financial institutions after being cleared of a US$385 million penalty by the US treasury.
The bank’s Group Chief Executive Officer, Dr Blessing Mudavanhu confirmed the recent development to Zbc News this Sunday saying it spells good fortunes for the bank.
Dr Mudavanhu said while he could not divulge further details, clearing of the penalty will restore global confidence in the institution and the country.
The US treasury department had slapped CBZ with a US$385 million penalty for processing transactions on behalf of a local lender which was under American sanctions.
Due to the penalty, the local bank faced challenges in undertaking several transactions, mainly on the regional and global financial arena.
Dr Mudavanhu said CBZ will soon be rolling out several strategies towards mobilising offshore credit lines.
He said the bank can now access lines of credit with global banks thereby enabling it to directly move money within the markets, hence reducing the high charges on transactions.
The bank had also been constrained in terms of its capacity to serve domestic customers due to the penalty.
Clearing of the penalty is set to see many institutions that were skeptical coming on board to do business with the financial institution.