The Reserve Bank of Zimbabwe has a new plan to help the economy. It's called the Targeted Finance Facility, or TFF for short.
Banks can borrow money from the central bank at a 20% interest rate and lend it to their customers. However, they can't charge more than 30% interest.
This 30% rate is lower than what banks usually charge. The central bank wants to ensure that farmers, factories, and mines can get the money they need. The economy is expected to grow by 6% in 2025, and lending to these key areas will help make that happen.
The loans must be paid back within 270 days. People can borrow a special currency called Zimbabwe Gold and pay it back using that same currency or regular foreign money.
The central bank has rules to keep things fair. Banks must use specific things as collateral to get loans, and they must also watch how their customers use the money.
If customers use the loans for the wrong things, they'll have to pay the money back right away and be charged extra. Banks that don't monitor this could also get in trouble.
Many people think this new facility is a smart move. It could help businesses grow when they couldn't get loans before. The central bank wants to support important parts of the economy, believing this will strengthen the economy overall.
Banks can borrow money from the central bank at a 20% interest rate and lend it to their customers. However, they can't charge more than 30% interest.
This 30% rate is lower than what banks usually charge. The central bank wants to ensure that farmers, factories, and mines can get the money they need. The economy is expected to grow by 6% in 2025, and lending to these key areas will help make that happen.
The loans must be paid back within 270 days. People can borrow a special currency called Zimbabwe Gold and pay it back using that same currency or regular foreign money.
The central bank has rules to keep things fair. Banks must use specific things as collateral to get loans, and they must also watch how their customers use the money.
If customers use the loans for the wrong things, they'll have to pay the money back right away and be charged extra. Banks that don't monitor this could also get in trouble.
Many people think this new facility is a smart move. It could help businesses grow when they couldn't get loans before. The central bank wants to support important parts of the economy, believing this will strengthen the economy overall.
