Banks sabotaging economy
EDITOR — Banks and micro finance institutions have been fleecing this economy in charging rates that border on economic sabotage.
I have always wondered why we have not taken action on this obvious shortcoming that has decimated our productive sectors.
Individuals have not been spared and the ability to save has been severely affected by these banks and micro finance institutions.
That the Reserve Bank of Zimbabwe has not acted decisively on this is very surprising. Our rate of inflation is around -3 percent yet we charge interest rates well above 10 percent.That alone speaks volumes about the recklessness prevalent in the financial services sector.
We are using a multicurrency system which is strong and stable.
In fact the currency in use has been strengthening against both local and regional currencies and there is therefore a strong case for annual rates well below 10 percent even if one were to factor in country risk.
What has been happening is that we have been seeing profits being declared in the financial services sector when the rest of the economy has been suffering.
Some companies have in fact shut down because they have failed to service the expensive debt. Who then is the enemy of the state? Isaiah Jemwa, Harare