Story by Stanley James, Business Editor
Zimbabwe’s banking sector continues to support funding requirements of the economy, with loans to productive sectors accounting for over 76 percent of lending during the first six months of this year.
Information contained in the Mid-Term Monetary Policy Review Statement shows that credit to the private sector was mainly channelled to households, manufacturing, agriculture and distribution.
The mining sector, riding on massive investments, was also a key beneficiary of total loans during the period under review.
As at the 30th of June, total banking sector loans and advances amounted to more than 27 billion Zimbabwe Gold.
The data indicates that the pace of lending by banks in the domestic currency increased sharply after the introduction of the ZiG.
Most banks continue to adopt a tight or cautious approach on lending, a move that has also created challenges to those in need of funds.
Proposals by industry and commerce, however, show that there is need for the banking sector to relax their lending conditions to stimulate production.
The Central Bank has assured the public it will continue to monitor the stable economic conditions to ease the cost of borrowing and create certainty in the financial markets.
