News / National
Chinamasa begs PTA bank for more funding
25 Sep 2014 at 11:13hrs | Views
UNDER pressure Finance and Economic Development minister Patrick Chinamasa yesterday continued his pursuits to attract funding for the country's comatose economy as he pleaded with the PTA Bank to pump money for infrastructure which is the country's major development priorities.
THE PTA Bank has this year advanced more than $200 million in trade and project finance, pushing the financial institution's funding to Zimbabwe to $500 million cumulatively.
The bank, which celebrates its 30-year anniversary this year, recently extended a $75 million syndicated finance facility to PPC to construct a cement making factory in Sunway City, in Harare.
Speaking at the inauguration of the PTA Harare Regional Office yesterday Chinamasa pleaded with the bank to release more funding towards infrastructure development which according to the minister, is lagging behind
"My challenge is to address the infrastructural gaps that exist in our infrastructural framework, which include power deficit, water reticulation challenges, railways, roads and ICT. You were telling me about the $10 million fibre optic that you put in Burundi. I would love to have that kind of support," said the minister.
He also revealed that PTA envisaged bringing on board other regional and international financiers into the project.
"The $500 million loan book represents 20 percent of the total loans approved by the bank across member countries. I also observe that the bank's intervention in Zimbabwe cuts across all sectors of the economy, agribusiness, manufacturing, health, education, mining, ICT, financial services and hospitality," Chinamasa said, adding:
"My biggest headache at the moment is that I do not have credit lines, access to credit for the productive sectors, agriculture, mining, tourism and manufacturing. I would welcome more lines of credit to the productive sectors at affordable interest rates," he said.
Minister Chinamasa said the prevailing interest rates of between 12 percent and 25 percent are not viable for business. PTA Bank president and chief executive officer Admassu Tadesse said that there is need to bring down the costs of capital to make Zimbabwean businesses competitive, reported the Herald today.
The PTA Bank is close to concluding discussions with other regional countries to join the institution which the bank said would help the development of infrastructure projects across the region. It has also taken other trade finance facility which has helped the bank to be profitable
THE PTA Bank has this year advanced more than $200 million in trade and project finance, pushing the financial institution's funding to Zimbabwe to $500 million cumulatively.
The bank, which celebrates its 30-year anniversary this year, recently extended a $75 million syndicated finance facility to PPC to construct a cement making factory in Sunway City, in Harare.
Speaking at the inauguration of the PTA Harare Regional Office yesterday Chinamasa pleaded with the bank to release more funding towards infrastructure development which according to the minister, is lagging behind
"My challenge is to address the infrastructural gaps that exist in our infrastructural framework, which include power deficit, water reticulation challenges, railways, roads and ICT. You were telling me about the $10 million fibre optic that you put in Burundi. I would love to have that kind of support," said the minister.
He also revealed that PTA envisaged bringing on board other regional and international financiers into the project.
"My biggest headache at the moment is that I do not have credit lines, access to credit for the productive sectors, agriculture, mining, tourism and manufacturing. I would welcome more lines of credit to the productive sectors at affordable interest rates," he said.
Minister Chinamasa said the prevailing interest rates of between 12 percent and 25 percent are not viable for business. PTA Bank president and chief executive officer Admassu Tadesse said that there is need to bring down the costs of capital to make Zimbabwean businesses competitive, reported the Herald today.
The PTA Bank is close to concluding discussions with other regional countries to join the institution which the bank said would help the development of infrastructure projects across the region. It has also taken other trade finance facility which has helped the bank to be profitable
Source - The Herald.
