News / National
Most Zimbabweans are now heavily indebted
18 Jan 2012 at 05:32hrs | Views
Most Zimbabweans are now heavily indebted, as credit becomes easily available in what could cause a crunch in the retail sector, as customers are likely to default due to low disposable incomes.
Most retail companies are offering credit facilities and, in the absence of a credit bureau, investors must deal with a customer base which does not have the capacity to service their accounts.
This has prompted the retailers to call for the urgent establishment of a credit bureau to manage the risk associated with borrowing.
Some employees have not received a salary increase in the past year yet the demand for foodstuffs and furniture is higher than before. Banks are also offering loans at high rates averaging 25% a year.
A number of customers are running several accounts, which they cannot service. But retailers have also continued to increase buying power which is well ahead of what individuals are earning.
Most retail companies are offering credit facilities and, in the absence of a credit bureau, investors must deal with a customer base which does not have the capacity to service their accounts.
This has prompted the retailers to call for the urgent establishment of a credit bureau to manage the risk associated with borrowing.
Some employees have not received a salary increase in the past year yet the demand for foodstuffs and furniture is higher than before. Banks are also offering loans at high rates averaging 25% a year.
A number of customers are running several accounts, which they cannot service. But retailers have also continued to increase buying power which is well ahead of what individuals are earning.
Source - TH
