DPCZ lists companies with NPLs

Published: 24 June 2018
THE Directors Protection Council of Zimbabwe (DPCZ) has completed the process of compiling the list of companies with Non-Performing Loans (NPLs) for absorption by the Zimbabwe Asset Management Company (Zamco).

DPCZ chief executive officer Mr Reggies Sibanda said Zamco has undertaken to absorb all NPLs from the organisation's member companies in the event financial institutions advances them to the institution.

"We have compiled a list of member companies with non-performing loans and will soon approach individual banks so that these loans can be transferred to Zamco. We have had meetings here in Bulawayo with Zamco and had an opportunity to talk one on one with its CEO (chief executive officer) Dr (Cosmas) Kanhai and he promised  to assist our members if the banks are willing to transfer the loans," said Mr Sibanda.

He said there was a need to expedite the transfer of non-performing loans to Zamco so as to ensure the revival of a number of companies that are struggling to find their feet due to the effects of the country's economic meltdown.

"We expect the concerned banks to demonstrate the same spirit by showing maximum co-operation and release the NPLs because some can be Active Performing Loans if affected companies are afforded a chance to re-strategise and refocus.

Zimbabwe is open for business and all businesses must be given a new lease of life and be assisted to find their feet. This can only be done if the banks also play their part through releasing the NPLs to Zamco," said Mr Sibanda.

He said there was renewed confidence to enhance productivity in industries buoyed by the business reforms being ushered in by the new political dispensation.

"This is a new dispensation and companies are geared to perform but NPLs had drawn them back, so as DPCZ we urge all our members to start to come dialogue with their banks with a view of coming to an agreement of offloading their NPLs to Zamco.

This is a rare opportunity that has presented itself so there is a need for co-operation between the affected banks and companies . . . ," said Mr Sibanda.

He praised Zamco for its feat of taking over $1 billion NPLs at banks for various companies to help businesses turnaround since its establishment.

"As DPCZ we are very excited about the efforts being made by Zamco of taking over NPLs amounting to $1 billion. This is by and large a welcome move and as such most companies had their lease of life renewed," said Mr Sibanda.

In 2014, the Reserve Bank of Zimbabwe (RBZ) created the Zimbabwe Asset Management Company (Zamco) to mop up NPLs after an insidious culture of dishonouring credit obligations took root, choking banking institutions from providing fresh loans to the market.

Against this background, Zamco has since inception been assuming mortgage bonds, non-insider loans and NPLs for companies in good stead.
- zimpapers
Tags: NPLs,

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