In
a weird turn of events, commercial banks in Zimbabwe under a proposed
financial regulation will collect domestic animals as collateral
security.
President of Zimbabwe, Robert Mugabe
Commercial banks in Zimbabwe will soon be compelled to accept
livestock such as cattle, goats and sheep as collateral for cash loans
to informal businesses under a new law presented to parliament Tuesday.
Under the Movable Property Security Interests Bill tabled for
debate by Finance and Economic Development Minister Patrick Chinamasa in
the House of Assembly, the Reserve Bank of Zimbabwe will compile and
administer a collateral-security register in which small-business
operators and individuals can register their movable assets as security
for credit.
Vehicles, television sets, refrigerators, computers and other
household appliances will become acceptable as collateral once they are
evaluated and registered in the central bank’s register, according to
Chinamasa.
“As minister in charge of financial institutions, I feel there
is need for a change of attitude by our banks to reflect of our economic
realities,” he said.
Banks are “stuck in the old ways of doing things and failing to respond to the needs of our highly informalized economy.”
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