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Rebasing will strengthen kwacha- Indo Zambia

Rebasing will strengthen kwacha- Indo Zambia
By Henry Sinyangwe
Tue 04 Sep. 2012, 19:07 CAT

INDO-ZAMBIA Bank managing director, Shankardas Gupta says the re-basing of the kwacha will also strengthen the currency and ensure tourists are not scared of the figures.

Gupta said that Statutory Instrument No 33 which only allows all products to be quoted in kwacha has affected deposits but is confident that the situation will normalise.

He said the policies put in place so far were good and the country would benefit in the long run.

Gupta said the government's policies in the financial sector were good for economic growth and sustainability.

He said this would instil confidence and strengthen the kwacha.

"And I do not see it depreciating any further but I see it appreciating," he said.

And Gupta said the bank is projecting 15 to 20 percent growth in all the sectors this year.

"Deposits have been a little slow because after the Statutory Instrument, there has been a little bit of confusion because foreign deposits are a little bit slow. But I think once the confusion is over, the people's minds will be added and we can pick up with the growth that we are projecting," Gupta said.

"We have about 60,000 customers. We are trying to grow a bank at about 15 to 20 per cent on all the fronts. Deposits, advances acquiring new customers for this current year".

Gupta said the bank was also offering housing loans at 17 per cent interest rate.

"On the lending side, yes, whatever businesses we are there. We have a very good scheme on the housing loan side. We have a project where we accommodate as many of our people so that we at least enable everybody to have a small house where they could have a decent living at about 17 per cent interest rate," He said.

Gupta said the cost of doing business in Zambia was higher compared to several other countries hence the lending rates were also on the higher side.

"Specifically, the cost of operations are higher here in Zambia than most of the places in the world because the cost of doing business here is high and that's the reason why the cost of the loans are also on the higher side," said Gupta.

Labels: INDO ZAMBIA BANK, KWACHA

posted by MrK @ 3:35 PM