Bank lending rates for individuals decline

The country's bank lending rates remained high despite showing a marginal decline in the week ending April 10, official figures have shown.

Statistics from the Reserve bank of Zimbabwe weekly economic report show that weighted commercial bank lending rates for individuals stood at 12,59 percent, down from 13,22 percent in the previous week.

Weighted lending rates for corporate clients, however, firmed to 8,88 percent during the week under review from 8,75 percent in the prior period.

The Zimbabwean banking sector has not been spared by the liquidity challenges that have crippled the economy over the past years and has enjoyed high interest rates on loans since the adoption of multi-currency regime, negatively affecting the local industry which cannot afford to access loans for capital at such high rates.

In a bid to reduce the average lending rates, Government in 2013 negotiated with banks to reduce their lending rates to levels below 10 percent per annum.

The agreement was, however, suspended before the end of the year after banks complained that the move had narrowed margins.