Reserve Bank of Zimbabwe (RBZ) governor John Mangudya will today present the 2016 monetary policy statement expected to bring fresh impetus into the economy.
BUSINESS REPORTER
The statement comes on the back of re-emergence of confidence in the banking sector, as evidenced by an increase in the number of deposits.
Mangudya is expected to update the market on his efforts to cut down the non-performing loans (NPL) ratio, which will allow banks to lend again.
From a peak of 20,45% in June 2014, the NPL ratio, decelerated to 14,25% in June 2015. It is expected to drop to 10% by June and 5% by December 31.
Keep Reading
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
The reduction in NPLs is expected to boost lending to various sectors of the economy.
Mangudya is also expected to update the market on the credit reference bureau, which would flush out multiple borrowers and defaulters.
Today’s statement comes as the country is working on clearing its debt with three creditors — International Monetary Fund, the World Bank and the African Development Bank.
Zimbabwe has put a credible plan to clear its $1,8 billion debt owed to IMF, World Bank and African Development Bank by June.
The clearance of the arrears is expected to unlock fresh capital for the country needed to reboot the economy.