99-Year Leases Are Now Bankable And Transferable
Presenting the 2018 Monetary Policy Statement, Reserve Bank of Zimbabwe (RBZ) governor Dr John Mangudya announced that the 99-year leases for land can now be used as collateral to access loans from financial institutions.
The 99-year leases are given by the government to farmers who apply for land for agricultural purposes.
Earlier this year, the government stopped the discriminatory practice of issuing 5-year leases to white farmers and has started issuing them with 99-year leases as well.
However, the governor did not go into detail about how this will be implemented.
According to Mandudya, the banks have agreed to the proposal and the leases are now transferrable and bankable.
The banks will be the first ones to be compensated in the event of a farm takeover.
The Governor was quoted saying:
In line with the current economic dispensation’s aspiration to transform agriculture into viable business proposition and taking into account of the significant improvements made by the government on the 99-year leases to enhance the security of tenure of the lease and making it bankable and transferable, the Bank has agreed with banking institutions for them to accept the 99-year leases as security for accessing credit from financial institutions in line with the provisions of the leases.