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Zimbabwe's Elections 2013 - Index of Articles
warns on bills scrapping
August 30, 2013
chief executive officer James Mushore has warned that the cancellation
of domestic consumers’ debts owed to local authorities and
plans to write off more utility bills may worsen the liquidity crisis.
analyst briefing in the capital yesterday, Mushore said while business
accepts the outcome
of the July 31 elections, the post election government faces
a herculean task of sourcing long-term capital to stimulate economic
after tax profit was up 0,04% to $2,6 million for the six months
the stagnation in the economy and the liquidity problems are going
to be exacerbated now with the cuts or cancellation in rates and
bills. The suggestion of cancellation of other utility bills is
certainly going to impact on liquidity going forward and obviously
this affects everybody,” Mushore said.
He said the
bank’s non-performing loans for the six months to June had
increased due to an underperforming economy.
loans and advances were up 10% to $210,6 million during the period
under review. Independent estimates suggest that Zimbabwe lost nearly
$1 billion to offshore markets due to uncertainty that gripped the
country in the run up to elections.
show that Zimbabwe’s economic growth rate is this year expected
to slow down due to underperformance of mining, manufacturing and
minister Tendai Biti last month warned that seven commercial banks
exposed to local authorities may fold following Local Government
minister Ignatius Chombo’s directive for municipalities across
the country to write off public debt.
local authorities to scrap all outstanding rates as at June 30,
NMB group chairperson
Tendayi Mundawarara, however, said the bank would remain aggressive
in sourcing lines of credit despite the biting liquidity constraints.
wait to see whether the economic environment will now become more
certain and predictable post the recent harmonised elections. Whatever
the case, the group will continue to scout for more international
lines of credit. The group will also explore growth opportunities
in other markets,” Mundawarara said in a statement accompanying
the financial results.
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