Published: 10 May 2018

LOCAL banks have been urged to remove collateral as a condition for extending lines of credit to entrepreneurs.

Finance and Economic Development deputy minister Terrence Mukupe called on banks to be active in the economic turnaround of Zimbabwe by removing collateral as a pre-condition when borrowing money.

"The issue of collateral by banks is overrated. I am calling on local banks that if we are to properly empower entrepreneurs, they have to revisit the issue of collateral and the way they approach their loan books.

"If banks are not extending debt and lines of credit to businesses because the entrepreneurs lack collateral, how do you expect business to grow," Mukupe said at the 2018 Zimbabwe National Chamber of Commerce Mashonaland Region Awards ceremony in Harare last week.
- fingaz

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