Zimbabwe’s bank managers, already strapped for cash for their customers may soon have to worry about where to put cattle if a new law comes into operation which would allow people to use their livestock as collateral.

Finance minister Patrick Chinamasa told parliament this week that people in the huge informal sector should be able to use their moveable assets such as cows and goats, as well equipment such as lorries and ploughs, to secure loans.

Zimbabwe has been broke since President Robert Mugabe, facing defeat at elections in 2000, encouraged his political supporters to invade and take over nearly all productive white-owned farms.

With an unemployment rate as high as 90 per cent, most people surviving in the informal sector but they cannot raise loans from banks as they have no security.

Mr Chinamasa said the Movable Property Security Interest Bill would make it much easier for those with moveable assets, such as livestock to get bank loans.

“As minister in charge of financial institutions, I feel there is need for a change of attitude by our banks to reflect our economic realities,” Mr Chinamasa said.

The bill provides for a collateral registry to be set up by the central bank of all movable assets, including cattle to be used as security for loans. Most Zimbabweans live in the rural areas and even those in towns have access to small farms.