Christmas seems to have come early for Small to Medium Enterprises. Many such businesses suffered as a result of economic challenges instigated by the Covid-19 situation. In order to help out with that situation, the RBZ has approved a $500 million loan facility. This move by the RBZ was made in a bid to stimulate economic growth.
Speaking in this regard yesterday, Central Bank Governor, John Mangudya, affirmed that this move would aid economic growth. He added that the bank policy rate at 40% and the interest rate on the Medium Term Accommodation Facility (MBA) at 30% per annum will be maintained.
In addition to the above, Mangudya gave the following statement:
“(The RBZ) approved a facility of ZW$500 million for term finance for micro, small and medium enterprises which the MSMEs will access from banks and micro-finance institutions at 30% per annum for purposes of enhancing production and productivity across all the sectors of the economy; and reaffirmed its position to support bureaux de change with foreign exchange requirements to support MSMEs which need foreign currency for their various productive requirements,”
The Governor reiterated the stand point of the Monetary Policy Committee (MPC) brought up at a meeting held last week. They were pleased with the reduction of the inflation rate from 240, 1% in March 2021 to 194% in April 2021. As a result the MPC expressed their commitment to working to sustain this dis-inflationary path.
This loan facility will be accessed through various financial institutions.
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