Last Saturday the president announced that banks would be stopped from all lending because their loans were being used to manipulate the foreign currency market. Later during the same week, the RBZ was forced to make exceptions in order to avoid chaos in the economy as various important companies started announcing far-reaching decisions. Now it seems the loan suspension might be scrapped entirely as soon as this coming week.
The suspension will be reviewed next week.RBZ governor speaking to Sunday Mail
This tidbit was revealed in a surprisingly candid and sober article in the Sunday Mail. The article actually quotes the ZNC communique to the government. They blamed the government for paying contractors who are being paid in ZWL and flooding the market as they seek to preserve value and get rid of a fast depreciating ZWL dollar.
We have predicted that given how important loans are to a plethora of corporates and even the government itself, it is unlikely that the loan ban will remain in place for long. Eventually, after carrying out “investigations” the RBZ and the government will claim some sort of victory and reverse the ban. It is unlikely the loan ban will be lifted this week though. Expect more exceptions however to the point where the loan ban is all but in gone with the ban remaining in name only soon.
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