The Small to Medium Enterprises Development Corporation is the newest member of the Bankers Association of Zimbabwe after the transfer of the supervision of the institution to the Reserve Bank of Zimbabwe.
RBZ Governor Dr John Mangudya said the institution together with IDBZ had been brought under the apex bank in line with pronouncements made at his maiden Monetary Policy Statement.
“These measures will promote financial sector stability through ensuring adherence, by all players in the financial services sector, to sound risk management practices and the protection of depositors through oversight by a supervisory authority,” said Dr Mangudya.
The move to RBZ will also strengthen the institute’s compliance systems and the calibre of its management.
Finance Minister Patrick Chinamasa recently signed a loan agreement of $3 million with the Arab Bank for Economic Development in Africa towards financing a line of credit to SMEDCO.
The loan is to be repaid in 20 years, including a grace period of five years.
The interest rate is 1 per cent per annum. – Online.