Zimbabwe: Um problema de liquidez

TOP Zimbabwean banker has spoken out on the country's liquidity crunch rocking the financial services sector and the economy, saying government must show policy consistency and re-engage the international community to normalise diplomatic relations while attracting foreign investment. Barclays Bank MD George Guvamatanga, who is also Bankers Association of Zimbabwe (Baz) president, told bankers last week at a 2013 Zimbabwe Independent Banks and Banking Survey event at a local hotel in Harare that government must move with urgency and clarity to tackle the resurging economic problems which followed the recent general elections. Guvamatanga said government also needed to recapitalise the Reserve Bank of Zimbabwe (RBZ), indicating a functional and adequately capitalised central bank would restore its lender-of-last-resort status. He said good corporate governance within the banking sector is critical to boosting market confidence, improve liquidity and save financial institutions from collapse. While deposits grew from US$3,7 billion between June 30 2012 to US$3,9 billion by June 30 2013, banks are saddled with massive non-performing loans. Banks have been keen to lend as shown by the loan-to-deposit ratios of over 90%, but companies are failing to repay, thus contributing to the liquidity problem. The deteriorating balance of payments due to the widening gap between exports and imports, among other things, is exacerbating the situation. Analysts say banks need a massive cash injection to avoid a full-blown crisis across the economy -- reeling from company closures and retrenchments -- given the persistent negative balance of payments. "I have a long career in treasury space and I know that if there is anything that a bank can surrender to, its liquidity. If there is no money, you are as good as dead," said Guvamatanga. Zimbabwe Independent