Agribank and the Infrastructure Development Bank of
Zimbabwe (IDBZ) have now been fully removed from the US sanctions list, the
American Department of the Treasury has announced, allowing them to do
international business more easily and obtain lines of credit.
The two banks were put under US sanctions in July 2008. In
April 2013 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 have now been removed with effect from today by the Office of
Foreign Assets Control of the US Treasury.
Finance and Economic Development Minister Professor Mthuli
Ncube told journalists during a post-Cabinet briefing in Harare last night that
“any removal of any institution, especially a financial one, is very positive
indeed. This will help the bank access credit lines and remove any restrictions
that pertain to Know-Your-Customer challenges, which is really what happens
when a bank is in the spotlight. Now that they (sanctions) have been lifted,
the banks will find it easier to do business going forward. So this is a very
welcome development indeed.”
In particular, by being taken off all sanctions lists, many
of those who were reluctant about doing business with Agribank and IDBZ will
now feel it is safe to deal with them. Under general international rules, other
banks and businesses were reluctant to have any dealings, even permitted
dealings, with the two because they were worried about falling foul of the
Know-Your-Customer rules.
Foreign Affairs and International Trade Minister Dr
Sibusiso Moyo said the lifting of sanctions on the two banks was “a progressive
and welcome development that is as a result of us finding each other’s
chemistry between Zimbabwe and the US”.
He said Zimbabwe was looking forward to further progress in
terms of lifting sanctions on other entities in the country. The minister said
Zimbabwe had moved from a point where the two countries were not talking to a
point of dialogue. He hoped that the sanctions would eventually be lifted as
the country pursued its re-engagement initiatives.
Pan African Chamber of Commerce board member Mr Langton
Mabhanga said the gesture by the US was welcome but said there was “still
more to be done” but said Agribank can now “fully enjoy its
legal persona as an agricultural bank”.
“The bank can now access lines of credit with international
monetary institutions especially the agriculture-specific facilities. This will
also enable the bank to directly move money to and from the markets, hence
cutting the premium charged on its transactions.
“Agribank can now access any market. All these put
together, the farmer is the winner. We urge the US to walk much faster in this
very direction of undoing the sanctions.”
Businessman Mr Busisa Moyo said the removal of the
requirement for an Office of Foreign Assets Control (OFAC) licence for foreign
transactions involving the two banks was “good news”, adding that Zimbabwe’s
agriculture and construction sectors now have a fighting chance for expansion
and employment creation. OFAC usually has the authority by means of a specific
licence to permit a person or entity to engage in a transaction which otherwise
would be prohibited. Herald
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