Agribank offers loans on 99-year leases

AGRIBANK has set aside a minimum of $105 million for the 2018-2019 cropping season, which would be extended to farmers on the basis of collateral and 99-year leases.

It becomes the first bank to announce that farmers with 99-year leases would get funding. This follows the pronouncement in February by Reserve Bank of Zimbabwe Governor Dr John Mangudya that bankers have agreed to accept 99-year leases as collateral after Government tweaked them to be transferable and bankable.

Previously, banks were rejecting leases claiming that they were not transferable in the event that a farmer borrowed money and failed to repay.