RBZ moves to curb multiple borrowing

HARARE - The Reserve Bank of Zimbabwe (RBZ) is set to establish a central registry to avoid prospective borrowers from using the same asset for multiple loans under the Movable Property Security Interests Act.

This comes as the Movable Property Security Interests Bill, which seeks to provide for movable property such as goats and cows to be used as security for the purpose of obtaining loans, came into law last week. 

“This is a major initiative for the country,” RBZ deputy governor Jesimen Chipika said yesterday on the side-lines of a cross-border traders meeting with central bank officials.

“At central bank level, we are establishing a collateral registry where if someone approaches their bank they can use their movable assets. They just agree with the bank that I have my cows.

“And if the bank is satisfied that this moveable asset is there and can cover the loan being asked for, they come to the central bank and then the asset is registered in the collateral registry in the central bank.”

The movable assets include any tangible property such as motor vehicles, jewellery, equipment and machinery, household goods and livestock, among others.

Chipika added: “We do this so that if you ask for a loan using one asset, you cannot use it again to pledge for another loan elsewhere, thereby safeguarding the integrity of our financial sector as we are opening up financial access to our people.”

Meanwhile, the RBZ-owned Homelink said the $15 million loan scheme availed to cross border traders early this year has begun benefiting thousands of cross-boarder traders.

This comes as government moves to cushion the informal traders against cash shortages that had given room for parallel market activities.

Cross-Border Traders Association president Killer Zivhu, who brokered the deal, said the facility has been assisting in stemming externalisation and encouraged more cross border traders to take up the scheme.

“Many Zimbabweans have a wait a see attitude, especially when we are coming to elections.

“They think it’s an election gimmick but many are benefiting from this programme,” Zivhu said.

He added that the coming into law of the Movable Property Security Interests Bill would aid cross-border traders who were finding it difficult to access loans without pay slips or guarantors.

Zivhu said there were vast opportunities for the traders, who could become a vehicle to boost the country’s exports.

“We will soon dispatch some of our members to Germany, Angola and many other places to explore export opportunities. This has nothing to do with politics. It’s money unveiled by RBZ. Let’s come and work for our children.

“So many people are benefiting from this project. To go on these trips you just have to come with your papers and you can be on that trip. You just have to be Zimbabwean,” he said.

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