Published: 11 February 2014

The Africa Export Import Bank (Afreximbank) says it has finalised a $100 million facility with the government to revive the interbank trading system next month.

In a development that is expected to ease liquidity challenges affecting key productive sectors, Afreximbank will next month release the $100 million facility aimed at ensuring that banks trade among themselves to mobilise adequate capital for industry and commerce.

Afreximbank Regional Manager for Southern Africa Gift Simwaka told the ZBC News on Monday that a memorandum of understanding with the Ministry of Finance has been finalised and modalities for the facility are now being processed.

"We are working towards the finer details to facilitate progress in the system," said Mr Simwaka.

The government revealed in the 2014 national budget that the revival of the interbank system is important in enabling banks to increase capital levels as well as avoiding the collapse of financial institutions.

Economic observers say the absence of an interbank trading system after the introduction of a multi-currency system in 2009 has hindered the capacity of banks to lend as well as broaden their ability to deal with huge sums of transactions on a daily basis. 

- zbc

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