THAT Zimbabwean companies are struggling owing to tight liquidity conditions in the country has been evident on the market since the adoption of multi currencies three years ago. A quick glance at public companies' financial statements shows how they have been forced to accept expensive short-term borrowings. Earnings are eroded by finance charges; Rio Zim, RTG, Cairns etc. The list is long.
But despite the challenges affecting business, government has not bothered to deal with a major factor that exacerbates the liquidity problems; the absence of a lender of last resort in the market.
...
AllAfrica Subscription Content
You must be an allAfrica.com subscriber for full access to certain content.
You have selected an article from the AllAfrica archive, which requires a subscription. You can subscribe by visiting our subscription page. Or for more information about becoming a subscriber, you can read our subscription and contribution overview.
For information about our premium subscription services:
You can also freely access - without a subscription - hundreds of today's top Africa stories and thousands of recent news articles from our home page »
Already a subscriber? Sign in for full access to article