NPLs seen jumping on Covid-19

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NON-performing loans in Zimbabwe are set to rise as the economy contracts due to the effects of Covid-19 lockdown restrictions on business activity, a securities trading firm IH Securities says.
In a note, IH said financial services would be among the sectors hardest hit by the lockdown, imposed at the beginning of January and later extended to mid-February, after the country experienced a surge in infections.

“As a result of the lockdown, we anticipate some contraction early in the year mainly emanating from supply chain disruptions, demand-side shock and closure of access to the large informal sector.