Zimbabwe loses more than 80 lines of credit, correspondent banking relationships

(Last Updated On: January 23, 2023)

BUSINESS REPORTER

 

Zimbabwe has lost about 80 lines of credit  and  correspondent banking relationships with multiple international lenders  over the past few years due to illegal sanctions, Finance and Economic Development Minister, Mthuli Ncube has said.

 

Zimbabwe had been isolated to the extent that four years ago, the southern African country  had about two banks the whole world  that could avail finance to Zimbabwe, according to official data obtained from  the Reserve Bank of Zimbabwe.

The international lenders saw Zimbabwe as a high risk country, posing a significant  risk to efforts to access  credit lines from international trade.

“The impact of sanctions  is that of access of credit abroad. Our banks  have not been able to access credit easily  from abroad. That is a key issue (as this) this credit is really for investment in the private sector. So, in a way  it also stifles investment. So, we don’t get as much credit as we expect,” Ncube said.

 

He added: “ Zimbabwe has lost  about  80 lines of credit and  banking relationships across the world (due to sanctions).”

 

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