The Reserve Bank of Zimbabwe (RBZ) has, with immediate effect, lifted the temporary suspension on lending services by banks.

In a statement, Tuesday, RBZ governor, John Mangudya, said the u-turn on the lending suspension will not apply to entities under investigation.

Banks and companies had criticised the move, indicating that it threatened sustenance.

Reasons for the change of mind have not been explained.

"Further to the circular issued to banks on May 9, 2022, the bank wishes to advise the public that the temporary suspension of lending services by banks has been lifted with immediate effect. The lifting of the suspension does not apply to those entities that are under investigation by the Financial Intelligence Unit (FIU) for abusing loan facilities to the detriment of the economy. The FIU has, accordingly, advised all banks of the affected entities," Mangudya said.

The temporary suspension was heavily criticised by Parliamentarians, saying the move by RBZ had caused losses in several companies, including the Zimbabwe Stock Exchange (ZSE).

Harare East MP, Tendai Biti, last week said the ban should be reversed as the ZSE had lost almost US$3billion.

Zimbabwe National Chamber of Commerce ZNCC) said the decision to suspend bank lending in a desperate bid to arrest the rapid devaluation of its currency will worsen the economic crisis and expose borrowers to predatory loans.