CABS has raised concern over the skyrocketing costs of residential stands and continued unavailability of serviced stands with title deeds for housing. Leonard Tsumba, chairman of Cabs, said
the continued shortage of serviced stands was impacting negatively on property development in the country.
“I pointed out in my statement last year that unavailability of serviced stands with title deeds and affordability continue to pose serious problems to property development, this problem has not changed,” Tsumba said.
“Your society remains committed to increasing mortgage loans. It made significant progress during the year under review but continues to be constrained by the negative factors described above,” said Tsumba.
He said the society was presemt using funds from its investments for lending purposes at below market rates in an effort to reduce the cost of borrowing by prospective borrowers.
“In order to alleviate affordability problems, funds generated from investing activities continue to be utilised to subsidise mortgage lending rates. These rates remain well below those of other financial institutions,” Tsumba said.
He also raised concern over the central bank’s policies on statutory requirements of building societies.
“The Reserve Bank of Zimbabwe adopted a carrot-and-stick approach with respect to the operations of building societies during the year. This saw statutory reserves reduced to 3% of deposits not supporting mortgages at the end of January,” said Tsumba.
“Statutory reserves were, however, increased on May 19 to 35% on the presumption that funds which had been released from statutory reserves in January had not been put into housing, but into the money market instead,” Tsumba said.
He said the current economic situation in the country continued to provide operational challenges for the society.
He however said the society was benefiting from the strong market reputation and its established brand.
“The economic climate for the period under review continued to present your society with major challenges,” said Tsumba.
A total of $267 billion was advanced compared to last year’s figure of $39 billion, a marked increase of 589%.
In the period under review Cabs assets closed at $1,6 trillion while its operating expenses closed at $133 billion.