$60 BILLION REVOLVING FUND FOR THE EXPORT AND PRODUCTIVE SECTORS

1. Introduction

The Statutory Reserves Export and Productive Sector Finance Facilities were converted to a Revolving Fund for the Export and Productive Sectors following the announcement of The Reserve Bank Monetary Policy Statement on 20 November 2002.

Funds are made available to banks on a ratio of 50% for the productive and 50% for the export sectors respectively.

Small and Medium Enterprises (SMEs) are eligible for funding.

2. Eligibility

Exporters of goods including the tourism sector and cross border transporters are eligible for export finance. The productive sectors eligible for funding are mining, manufacturing, tourism and agriculture.

3. Eligible Expenditure

Working capital requirements only.

4. Currency of loans

All disbursements and repayments are made in Zimbabwe Dollars.

5. Interest Rates

The final interest rate to be charged to borrowers' is an all-inclusive rate of 15% and 5% for the productive and export sectors respectively. This rate will be reviewed periodically and banks will be informed accordingly.

The Reserve Bank will levy a fee of 1% of the total amount disbursed as

management fees.

6. Loan Maturity

The maximum loan maturity for a productive sector and pre shipment loan is 180 days while that for a post shipment loan is 90 days.

7. Repayment of loans

Loans must be repaid on maturity through the lending bank for onward remittance to the Reserve Bank. Evidence of export proceeds must be submitted for export loans in the form of discharged CD1 forms.

8. Documentary Requirements

All sections of the loan application form must be completed in full and accurately, paying attention to full disclosure of all existing loans including those with other lenders. Bills indicating tenure (maximum of days) accepted by the participating bank and signed by the borrower.

The following additional documents will be required forthe sectors listed below:-

9. Tourism Sector

Evidence of compliance with the Exchange Control Regulations of submitting TR1 returns by the 15 lh day of each month. Copies of TR1s submitted during the

I ast 12 months should accompany the application. The borrower's Zimbabwe Tourism Authority Registration Number should be quoted on the application form.

10. Horticulture

Form CD 1s and a Bill of Entry, which indicate details of the exporter, grade, size, quality and quantity, where applicable.

For horticultural products whose export prices cannot be established at the time of shipment, the corresponding value must be declared once the foreign currency proceeds are received and the relevant CD1 Form acquitted. CD1 Forms for

flowers should be discharged within 45 days of shipment, while fruits, vegetaoles and citrus exports within 90 days. The account sales statement or auction floor printout must be attached to the CD1 Form on acquittal.

A schedule from the grower showing the projected production in flower stem or kilograms of produce and expected price for at least 6 months.

11. Transport Sector

Evidence of registration of the borrower i.e. copies of Bilateral or PTA Permits. Form CDS whose Zimbabwe Dollar amount is at least equivalent to the loan amount.

12. Participating Banks

All Commercial Banks and Merchant Banks Genesis Development Bank

All inquiries must be made through the participating banks.