Removal of banks from sanctions hailed

news-image

Herald Reporters

Bankers, farmers and economists have praised the full removal of Agribank and the Infrastructure Development Bank of Zimbabwe (IDBZ) from the US sanctions list, saying the development will help the agriculture sector, which is critical in turning around the economy.

The American Department of Treasury last week implemented an earlier decision to lift sanctions against the two banks by removing the need for those dealing with the banks from first obtaining specific permission. This allows Agribank and IDBZ to engage in international business more easily and obtain lines of credit.

The two banks were put under US sanctions in July 2008. In April 2013, the sanctions were partially lifted by the issuance of a licence permitting business with the two banks subject to limitations. In February 2016, they were removed from the sanctions list, but the licence requirements remained.

These licence requirements have since been removed with effect from Thursday by the Office of Foreign Assets Control of the US Treasury. Agribank acting chief executive, Mr Elfas Chimbera, told The Herald that the total lifting of OFAC sanctions, was a “very positive development for the bank”.

“In particular over the past several years, Agribank has been expanding the search for correspondent banking relationships as well as regional and international lines of credit to support agriculture financing and development. This development therefore, is positive as it measurably enables the bank to further expand the search for correspondent banking relationships as well as medium and long-term lines of credit critical for agriculture financing and development,” said Mr Chimbera.

Economist, Mr Persistence Gwanyanya, said the removal of sanctions for Agribank and IDBZ will help ease international transactions as well as help the two banks access international capital easily.

“It is very difficult for the external world to transact with Agribank as it was on the US sanctions list, which meant that all US dollar transactions had to go through the US and get scrutinised, with dire consequences for any party that breaches the regulations regarding transacting with anyone on the sanctions list as defined by United States Treasury’s Office of Foreign Assets Control (OFAC).

“Because of this, the banks lost its correspondent banking relationships, making it difficult to transact internationally.” -The Herald

LEAVE A COMMENT

Comments

image

Poachers have broken into Botswana’s p Read more...

10 Aug, 2018 at 01:58 PM

image

In a sign that Botswana is likely to cli Read more...

02 Jul, 2018 at 09:26 AM

image

DAR ES SALAAM - DIRECTIVES on online for Read more...

02 Jul, 2018 at 01:24 PM

image

Gaborone - Poachers have broken into Bot Read more...

04 Feb, 2019 at 07:35 AM

image

SADC leaders meeting in Tanzania this we Read more...

19 Aug, 2019 at 01:51 PM

image

Windhoek Namibian President Hage Geingob Read more...

14 Jul, 2020 at 01:15 PM

image

Windhoek-Namibian Minister of Health and Read more...

13 Jul, 2020 at 06:09 PM

image

Africa may have lost some momentum on it Read more...

10 Jul, 2020 at 03:13 PM

image

Windhoek - The United Nations Security C Read more...

10 Jul, 2020 at 03:07 PM

image

The R500 billion (approximately US$30 bi Read more...

10 Jul, 2020 at 03:05 PM

image

Lusaka - Amid myriad criticisms from soc Read more...

14 Dec, 2018 at 06:28 AM

image

FORMER Liberation Movements (FLMs) in So Read more...

16 Sep, 2019 at 12:36 PM

image

Heads of state and ministers who travell Read more...

30 Jul, 2018 at 02:01 PM

image

Windhoek - The European Union National I Read more...

01 Apr, 2019 at 12:33 PM

image

Windhoek - More than 1 000 languages are Read more...

27 May, 2019 at 12:44 AM