Zimbabwean banks to accept livestock as collateral
A new law passed in Zimbabwe will allow the use of livestock to guarantee loans.
The bill will allow borrowers to register ‘moveable’ assets as collateral at the central bank registrar, thus meaning that commercial banks will be required to accept them as security for credit.
Other household items, such as televisions, refrigerators, computers, and vehicles will also become acceptable collateral upon registration at the central bank registrar.
The Financial Times reports that Patrick Chinamasa, the Zimbabwean Finance Minister, told MPs that the assets would “include any type such as machinery, motor vehicles, livestock, and accounts receivable”. The minister further added that the reform would “promote financial inclusion to small and medium enterprises, women, youths and other under-banked groups”, and “increase access to credit”.