Commercial banks in Zimbabwe will soon be compelled to accept livestock such as cattle, goats and sheep as collateral for cash loans to informal businesses under a new law presented to parliament Tuesday.

Under the Movable Property Security Interests Bill tabled for debate by Finance and Economic Development Minister Patrick Chinamasa in the House of Assembly, the Reserve Bank of Zimbabwe will compile and administer a collateral-security register in which small-business operators and individuals can register their movable assets as security for credit.

Vehicles, television sets, refrigerators, computers and other household appliances will become acceptable as collateral once they are evaluated and registered in the central bank’s register, according to Chinamasa.

“As minister in charge of financial institutions, I feel there is need for a change of attitude by our banks to reflect of our economic realities,” he said. Banks are “stuck in the old ways of doing things and failing to respond to the needs of our highly informalized economy.”

Big question, can such happen in Nigeria? Do you think its a good move.

https://www.bloomberg.com/news/articles/2017-04-11/new-law-to-compel-zimbabwe-banks-to-accept-cattle-as-collateral

Though it's a good development but I think animals are more than men in that country

Africans. Let's underdevelopment don't be our birthday right. I heard someone below say "Good move". Biko what is good about it

If you hear story of some countries you will appreciate Nigeria..........
Hw I wish we can use our senators as collateral in World Bank

Very good one from Zimbabwe, laws as such engage the bank to be stakeholders in ur business. Only if Africans start doing things their way...The whites never allowed us to grow naturally, growth process is gradually and sometimes procedural. We were forced to catch up with 21st century advancement in technology, reasons we can't compete because our growth wasn't organic.
.
Zimbabwe had realized, atleast in the banking sector...reason they went back to the drawing board.

NIGERIA BANKS ooo

Collect mansion cos of 100k borrowed

If we start that one here, na the Fulani people go suffer am cos any cow wey waka anyhow, that's a potential collateral, i go carry am

wahalla, fulani herdsmen in zimbabwe now be like.

With dis in naija, am sure herdsmen will stop killin and start actin coporate like bankers

If happened here in Nigeria, definitely it would be abuse.. turn to big time scam.

prince123:
Commercial banks in Zimbabwe will soon be compelled to accept livestock such as cattle, goats and sheep as collateral for cash loans to informal businesses under a new law presented to parliament Tuesday.

“As minister in charge of financial institutions, I feel there is need for a change of attitude by our banks to reflect of our economic realities,” he said. Banks are “stuck in the old ways of doing things and failing to respond to the needs of our highly informalized economy.”

This minister's comment is deeper than it looks.

At times we forget that money is essentially a medium of EXCHANGE. One man's trash is another man's treasure.

Haven't you heard of the young man who once traded up from a red paper clip until he had a house?

Even here in Nigeria, people are already trading their land for cars. Why?

Because nobody really "needs" money. We only need what money buys.

Think about it: can you really "eat" the pieces of coloured paper? No, you want the cash so it can help you get the "things" you really want

Let's commend this minister for thinking outside the box

Try that here lols

Noice

This kind of a law, will not work in Nigeria.

Good one..... I get ten goat, Gtb how far..... Just 10m. Sorry not for nija

Hahahaha funny

No wonder herdsmen are now heading to Zimbabwe.

youngest85:

Though it's a good development but I think animals are more than men in that country

Animals more than men , thats funny.

In the others news. Who else heard about the bombing of Dortmund team bus. That is my bet9ja brothers at work. Them don burst ticket die this season. Can't defeat common schalke 04 at the weekend. Manchester United aka draw soup team. Beware

oluseyiforjesus:
If you hear story of some countries you will appreciate Nigeria..........
Hw I wish we can use our senators as collateral.

l concur

Vehicles, television sets, refrigerators, computers and other household appliances will become acceptable as collateral once they are evaluated and registered in the central bank’s register, according to Chinamasa.

Wow for real

Mugabe has messed up the country and he keeps blaming the West.

Buhari the cattle herder must have given this instructions

It's very bad! What if after collecting the collateral, the cattle catches flu and die? It can't happen here o

... Try it in Nigeria

youngest85:

Though it's a good development but I think animals are more than men in that country

That's why the banks need to keep the animals to give enough room for men to play

Nawa o

Pastoral banking

Its as a result of bad management of the economy. since the govt collected farms from the white, the economy failed, all commodities skyrocketed.

It can only happen in Zimbabwe.