Zimbabwe Borrows $985 Million From African Banks For Fuel And Exports

Mangudya said the central bank borrowed $641 million from the African Export and Import Bank, $152 million from Eastern and Southern African Trade.1 min


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Zimbabwe is unable to get funding from foreign lenders like World Bank due to arrears of more than $2.4 billion.

So Zimbabwe looked to lenders from the Africa and local banks to shore up its budget, which is successful.

The southern African nation last month ditched a discredited 1:1 dollar peg for its surrogate bond notes and electronic dollars, merging them into a lower-value transitional currency called the RTGS dollar.

Mangudya said the central bank borrowed $641 million from the African Export and Import Bank, $152 million from Eastern and Southern African Trade and Development Bank, and $25 million from Mozambique’s central bank, among others.

Mangudya said, “The loans, which would be repaid from future gold earnings, have a tenure of between three and five years and attract an interest of up to 6 percent above the Libor rate.”

Zimbabwe economy is in deep distress!


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