POSB to establish exporters' credit facility

POSB to establish exporters' credit facility
Published: 07 September 2018
The People's Own Savings Bank (POSB) says it will soon unveil a $10 million line of credit aimed at assisting exporters to secure foreign currency.

A persistent trade deficit has plunged Zimbabwe into a serious foreign currency shortage, which, among other factors, has created difficult conditions for industry.

POSB chairperson Mathilda Dzumbunu said the government-owned bank was at an advanced stage of establishing a $10 million line of credit with a financier.

"We expect the facility establishment modalities to be finalised in the second half of the year," she said in a statement accompanying the bank's financial statements for the half year ended June, 2018.

"As the economic revival gathers momentum, POSB has taken heed of the calls by the Reserve Bank of Zimbabwe to deliberately support productive sectors that generate foreign currency to ease both cash shortages and cross border payment bottlenecks," she added.

Dzumbunu said the credit facility was also part of the bank's long term strategy for sustainable growth of the business.

"The board will continue to maintain its focus on the implementation of the bank's prevailing strategy to ensure that there is delivery of value to its customers and to achieve business growth and sustainable returns for our stakeholders.

"In keeping with the bank's mandate on financial inclusion, POSB will continue to support efforts to grow the economy whilst ensuring that depositors' funds remain protected," Dzumbunu said.

The bank's net profit for the six months ended June 30, 2018 was $8,11 million, up 112 percent from the $3,83 million achieved in the comparable period in 2017.   

Interest income increased by 27 percent to reach $8,43 million, up from $6,62 million recorded in the previous period.

- The Financial Gazette
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