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A closer look at how Zimbabwe's cattle bank works

Tuesday - 6/18/2013, 12:10pm  ET

The Associated Press

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.


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