A closer look at how Zimbabwe's cattle bank worksJune 18, 2013 @ 7:58 am
MARONDERA, Zimbabwe (AP) - HOW A CATTLE BANK WORKS:
_ The bank sends a veterinary official to inspect a farmer's cattle and assesses their monetary worth.
_ Based on that, owners can get loans up to the value of the cattle they are banking as collateral.
_The bank pays 10 percent interest a year on the value of the cattle deposited, which can be paid out in cash or additional cows.
_ Owners have the option to get back their cattle after an initial two years or leave them with the bank for longer.
_ In the event the owner fails to repay the loan, the bank keeps the animals.
_ When an owner dies, a close member of the family can take over payment of the loan and ultimately get the cattle back.
_ The bank reserves the right to slaughter aging cattle to sell the beef and replace them with more productive cattle of the same value.
_ The bank also carries out breeding programs and gets to keep the calves of cows deposited.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
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