From NewsdzeZimbabwe.

Zimbabwe’s banking sector has agreed to lower interest rates to between 6-and-18 percent effective Oct. 1 in accordance with the central bank, Reserve Bank of Zimbabwe Governor John Mangudya said.

Zimbabwe’s exorbitant interest rates of up 40 percent per year have been blamed for stifling economic growth and breeding non­performing loans in an economy hit by liquidity challenges.

Mangudya said lending to productive sectors (typically agriculture, industry, trade, tourism, environment and natural resources) will not exceed 18 percent per year,
depending on the borrower’s risk profile.

Zimbabwe lowers interest rates

He pegged housing finance rates at between 8-to-16 percent per year
with consumptive lending settling at between 10 percent and 18 percent.

Defaulting borrowers, he said, would be liable to a penalty rate of 3­8 percent above the relevant lending rate.

“In view of high interest rates currently obtaining in the economy, there is scope for reduction to ensure that lending rates are supportive of economic recovery…banks are urged to reduce their cost structures to enable them to contribute to the reduction of the cost of doing business in Zimbabwe,” Mangudya said.

Read more at NewsdzeZimbabwe.