Chinamasa accuses banks of sabotaging economy


Patrick Chinamasa

By Nomalanga Moyo
SW Radio Africa
17 Ranuary 2014

Finance Minister Patrick Chinamasa has laid the blame for the country’s poor economic performance on the banking sector, according to reports.

The minister told delegates at an economic outlook symposium held at the Mandel Training Centre in Harare, that the banks’ reluctance to give loans to fund the country’s informal sector was akin to imposing sanctions on the economy, the NewsDay reported Friday.

“We cannot have a situation where the majority of our population has little access to the economy and no access to capital.

“They used to organise lines of credit of up to $800 million, but now it is down to $40 million a year which is suggesting they are strategising an exit out of our economy. I get this feeling that these banks are imposing sanctions onto their own country,” the paper quotes Chinamasa as saying.

But Harare-based economist Godfrey Kanyenze said banks cannot be blamed for refusing to lend to ‘an underground sector’.

“Some operators in that sector are of no fixed abode, are transient and unregistered. Some don’t keep books or records and so how are banks expected to lend to them.

“Any financial institution will be reluctant to support that which is not above board,” Kanyenze said.

He said the first step will be for government to organise this sector through regulation that will promote the players through business development services so that they can transition into the formal sector.

“Banks require collateral from anyone who borrows, and the majority of people in the informal sector do not have this and it is the duty of government to organise this sector before banks can be asked to step in,” Kanyenze added.

Last week, another ZANU PF official, Themba Mliswa, criticised banks for refusing to lend to the country’s new farmers on the basis of the government’s 99-year farm leases.

Bankers however insist that the leases do not constitute secure land tenure, and lending to farmers on the basis of the document will expose the institutions in the event of defaults on repayment.

9 Responsesto “Chinamasa accuses banks of sabotaging economy”

  1. The Black Aristocrat says:

    Typical clueless Zanu PF – it is always someone else’s fault!

    These knuckleheads got duped into believing refined diesel flows out of rocks and even blamed that on sanctions !

  2. Yepec says:

    Now, it is the Banks ! What about the US$200 dollars, you allocated Mugabe’s Office when the government is broke? Are you, also, part to blame in sabotaging the economy of the country? This game must stop Chinamasa, you are the Finance Minister of the country.

  3. dumbu says:

    How can this idiot Chinamasa accuses banks of sabotaging economy while he openly knows that ZANU(PF) destroyed our economy ? These old thieves should be taught a very big lesson this year. We want to see if they are going to move forward without MDC(T).

    • The Black Aristocrat says:

      Exactly, how can you destroy something you have not got because YOUR own policies destroyed it in the first place!

  4. tatambura nehanda says:

    I wonder wat kind of a minister this dude is, he delves into trivialities, yesterday it was about makandiwa,today its banks mane it may be mdc next week it will be sanctions.
    He doesnt talk of diamonds and the mineral wealth thats not being accounted for.
    Neither does he talk of the ailing agricultural sector which contributes much to our economy.
    He doesnt seem to have an idea of his polifolio.
    If i were him i would resign and nominate a better equiped bloke

    • The Black Aristocrat says:

      Talk about diamonds and mineral wealth? Good god man have you gone mad! As you know very well those god given riches are all for us to spend to keep us in the billionaire lifestyles we have become accustomed and entitled to!

      Come on don’t be silly, you can’t expect your ‘leaders’ to walk around looking like mere millionaires can you !

      Getting back to the disaster that is the Zimbawean economy, with the best years of the diamond mines now behind us, sadly we need to raise more taxes, as our private jets, 50 bed mansions, farms, fleets of executive cars, country club fees, designer clothing, squads of highly trained personal security guards, PA’s, Butlers, Maids, Chauffeurs, gardeners and high maintenance wives and mistresses do not come cheap !

      So come on Zimbabweans, show your patriotism and spirit, pay up your taxes, you know it is for a good cause !

      • Chimbwido Warvet says:

        By changing your name does not change your personality Wilbert Mukori. You remain what you have been for the last twenty years when you came of age, a sell-out and an uncle tom.
        A scorpion is known by its characteristics in that it bites and some even kill humans. Similarly, a leopard has never changed its spots for centuries. It is a predator or one that lives by preying on other organisms, and are carnivorous or fresh-eating mammals, without exception.

        You can not fool the Warvet but fools like Yepec and others. You are now losing your f++++g mind buddy if you think you can hide behind that stupid veil. It is not difficult for the Warvet to unveil the woman behind that stupid name.

  5. Common Sense says:

    So the banks are being accused of not funding agriculture etc….. is it any surprise when the ZPF government is taking land away from people it (illegally) gave land to and leaves them out in the cold….

    Go on, take the controlling share of the banks like you keep threatening, then you have no one to blame but yourselves… thick as thieves you are

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