18 January 2018
   
LATEST: Bennett in fatal chopper crash?
Discipline politically unruly chiefs: group
Polls in '4 to 5' months: Mnangagwa
$430k cocaine woman blames Brazil firm
Tobva tadii paya trio bailed after 3mths
Businessman fleeces clinic of $27,000
Soldiers deployed all over rural Zim: MDC-T
MDC-T’s Mudzuri begs ZCTU for support
MORE NEWS
Bond notes here to stay, says Chinamasa
South Koreans in $70m Zim agro-project
MORE BUSINESS
Hubby bashes Star FM anchor in love row
$18/yr subscr too much for musicians
MORE SHOWBIZ
Zimbabwe beat Sri Lanka in thriller
Caps bid to rehire star forward Nhivi
MORE SPORTS
A view beyond the Zimbabwe coup
'Shit-hole': Just Take moral high ground
MORE OPINION
 
Economy: the need for a paradigm shift
Trump rage ignores truth: A response
MORE COLUMNISTS
 
 
CBZ targets to keep bad loans at 8pct, CEO
13/08/2014 00:00:00
by The Source
 
 
RELATED STORIES
CBZ banking group profits down 20pc
CBZ bank's profits down 13 percent

CBZ BANK says it will contain the level of non-performing loans at around eight percent by year-end, from the current 6,1 percent, and welcomed plans to set up a special purpose vehicle (SPV) for bad loans as well as a credit bureau.

Chief executive Never Nyemudzo told journalists and analysts at a briefing on Wednesday that the bank would, in the second half of the year, employ effective credit control measures to contain bad loans which peaked 15,92 across the sector last year.

The central bank last month said it was considering setting up an SPV and credit bureau, which would be key in containing NPLs, he added.

CBZ Bank, he said, was vigorously trying to recover at least half of the $66,6 million in bad loans by year end.

“We are targeting our NPLs to remain below eight percent. We are currently sitting at about 6,1 (percent). What we are going to do to be able to that is to do what we call early identification,” Nyemudzo said.

“Once we have identified that a customer is struggling, you have two options that you have - you sit down with the customer and show them the trend of how their account has been behaving.

“In most cases we have had situations where customers say gentlemen, where I am going the best thing for me to do now is to sell the security that you are holding.

“That is voluntary disposal. The other issue is also to collect early. Because of these two initiatives, we are able to continue containing NPLs.”

Commenting on the $200 million market instrument with the African Export and Import Bank (Afreximbank), Nyemudzo said negotiations were progressing well, adding that the funds would ease the liquidity constraints affecting productive sectors.

Afreximbank has committed to underwrite the bond, which would have a coupon rate of seven percent, he said.


Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker