Published: 11 December 2017

Non-performing loans (NPLs) dropped to 8,63 percent this year from 20,5 percent in 2015, raising expectation the financial services sector is becoming more stable.

Although the NPLs have declined to single-digit figures, they remain above the 2016 year - end target of 5 percent set by the Reserve Bank of Zimbabwe (RBZ).

There are fears that while cutting back on lending might help maintain stability in the financial services sector, it will negatively impact on local economic activities as this affect loans uptake due to stringent measures.

Most companies are struggling to access finance for working capital requirements, while the credit has been expensive where available.
- The Herald

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