Productive sectors fail to access loans PDF Print E-mail
Saturday, 02 June 2012 12:38

industries.jpgConcern is being raised that in spite of a rise in bank deposits to $4 billion in June this year from $3,2 billion in January 2012 , key productive sectors are struggling to access loans from the financial industry.

A local entrepreneur, Mr Ather Mutaisi says banks should increase lending to the productive sectors in order to create new jobs and facilitate an urgent recovery of ailing companies.

“What we need is for the banks to increase the productive lending to unlock growth,” said Mr Mutaisi.

While it has emerged that banks are currently lending limited funds to avoid high default rates on the back of cash flow constraints , stakeholders have expressed concern over failure by treasury in availing adequate funds to ensure that  the Reserve Bank of Zimbabwe resumes its lender of last resort function.

A business analyst, Mr Vale Mpopela however believes the availing of sufficient loans will enable the economy to achieve 2012 targets.

He said: “What we want are the loans to ensure that everything functions smoothly in the economy.”

Zimbabwe’s productive sectors are failing to increase output due to the absence of long-term offshore credit lines, a move that has resulted in government considering a downward review of industrial growth rates for this year.

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