Governor of the Reserve Bank of Zimbabwe (RBZ), John Mangudya, has lifted the bank’s suspension on its lending policy.

“Further to the circular the Reserve Bank of Zimbabwe issued to banks on May 9, 2022, the bank wishes to advise the public that the temporary suspension of lending services by banks has been lifted with immediate effect,” said Mr Mangudya.

President Emmerson Mnangagwa announced the suspension lifting at the beginning of May, but he said companies being investigated for alleged financial misdemeanours would still not be allowed to borrow.

Mr Mnangagwa, on May 7, announced a raft of measures that he said would bring back confidence in the use of local currency, among them a suspension on lending to all entities, including government, corporate and individuals.

The move, however, triggered disruptions within the economy, with some companies stopping advance payments to contractors while others stopped buying commodities, citing a lack of cash.

However, the RBZ governor maintained that the suspension would not apply to entities under investigation.

RBZ recently said that it reserved the right to publish names of significant borrowers across the banking sector in the public interest in the wake of manipulation of the exchange rate by some borrowers of large amounts to the detriment of consumers.

(Xinhua/NAN)