Thursday, September 9, 2010

Zimbabwe seeks R3bn loan from SA

Zimbabwe is seeking R3,2 billion in an overdraft and credit facility from South Africa as the country battles to reverse the effects of a decade-long political and economic crisis, Finance Minister Tendai Biti said yesterday.

A power-sharing government set up last year by bitter rivals President Robert Mugabe, pictured, and Prime Minister Morgan Tsvangirai has stabilised an economy ravaged by hyperinflation, which peaked at 500 billion percent in December 2008. But the government says it needs at least R72 billion for reconstruction. Biti told business executives in Harare that the government was looking to negotiate with South Africa's government for financial assistance after agreeing terms for a R509 million credit line with Botswana.

Zimbabwe has so far failed to attract significant funds from Western donors, who are demanding more reforms before providing aid to the unity government.

Source: Sowetan

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