mushayavanhu bankers ass 03.08.10.jpgThe financial sector is considering introducing long term loans depending on the availability of funds in the market.

 

In line with policies to solve borrowing challenges affecting industry and consumers, local banks are in consultations as to how they can extend the current loan repayment duration from90 days to 360 days.

 

Bankers Association of Zimbabwe President, Mr. John Mushayavanhu said inspite of the high interest rates and financial shortages, recent measures by the central bank to increase funds in the banking industry is likely to create a favourable borrowing environment.
 
“Discussions are still in progress and we hope that once everything is finalised then we can come up with a decision to extend the loan duration period,” said Mr. Mushayavanhu.

 

Stakeholders are however concerned that although the financial sector plans to extend the loan repayment period, funding  problems might pose challenges to banks as alluded to by economic analyst , Mr. Willie Ganda, who says government should  introduce policies aimed at generating more funds in the economy.
 
cash notes.jpg“We are still concerned with the lack of funds in the market to the extent that it will be difficult for several banks to achieve such goals of extending the loans,” Mr. Ganda said.

 

Banks are in discussions with industry and consumers on measures to increase production so as to increase financial inflows.