CBZ BANK says it will contain the level of non-performing loans at around eight percent by year-end, from the current 6,1 percent, and welcomed plans to set up a special purpose vehicle (SPV) for bad loans as well as a credit bureau.
Chief executive Never Nyemudzo told journalists and analysts at a briefing on Wednesday that the bank would, in the second half of the year, employ effective credit control measures to contain bad loans which peaked 15,92 across the sector last year.
The central bank last month said it was considering setting up an SPV and credit bureau, which would be key in containing NPLs, he added.
"We are targeting our NPLs to remain below eight percent. We are currently sitting at about 6,1 (percent). What we are going to do to be able to that is to do what we call early identification," Nyemudzo said.
"Once we have identified that a customer is struggling, you have two options that you have - you sit down with the customer and show them the trend of how their account has been behaving.
"In most cases we have had situations where customers say gentlemen, where I am going the best thing for me to do now is to sell the security that you are holding.
"That is voluntary disposal. The other issue is also to collect early. Because of these two initiatives, we are able to continue containing NPLs."
Commenting on the
Afreximbank has committed to underwrite the bond, which would have a coupon rate of seven percent, he said.
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