Opinion / Columnist
Afreximbank loan: A case of reckless credit granting
22 Oct 2018 at 06:53hrs | Views
It is now public knowledge that our country is largely depending on debts. We have accumulated so much debts mainly because we are not producing anything. Our local and foreign debt stands at 13 billion. We have so many creditors that we are owing and have no clearance plan to repay those loans.
The question then arises, "how does Afreximbank afford to grant Zimbabwe a loan without a clear debt plan?" I submit that, it is because the bank is engaged in reckless credit granting.
When a credit provider lends money without conducting a proper affordability assessment to ensure that the consumer can afford to repay the credit and continue to live comfortably off of what they earn, then they are guilty of reckless lending.
Additionally, if a credit provider conducts an assessment and lends money to a consumer, despite knowing that they are unable to pay it back, then they too have committed reckless lending.
There is no way the IMF and the World Bank will offer Zimbabwe new loans until we have a clear debt plan.
Walter Nyabadza is a Zimbabwean lawyer and legal advisor for the National Reclamation Assembly. He rights in his personal capacity and can be contacted on 0771 725 704 or nyabadzawalter@yahoo.com
The question then arises, "how does Afreximbank afford to grant Zimbabwe a loan without a clear debt plan?" I submit that, it is because the bank is engaged in reckless credit granting.
When a credit provider lends money without conducting a proper affordability assessment to ensure that the consumer can afford to repay the credit and continue to live comfortably off of what they earn, then they are guilty of reckless lending.
There is no way the IMF and the World Bank will offer Zimbabwe new loans until we have a clear debt plan.
Walter Nyabadza is a Zimbabwean lawyer and legal advisor for the National Reclamation Assembly. He rights in his personal capacity and can be contacted on 0771 725 704 or nyabadzawalter@yahoo.com
Source - Walter Nyabadza
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