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More credit for new Zimbabwe government

More credit for new Zimbabwe government article image

Zimbabwe's new unity government - formed by former rivals President Robert Mugabe and Prime Minister Morgan Tsvangirai - has secured a $330 million credit line from the African Export-Import Bank to assist its reconstruction efforts. "The future will involve the bank committing to provide lines of credit to the tune of $330 million that will be used to support the gold and tobacco sectors as well as provide liquidity for banks and grain imports," said Finance Minister Tendai Biti. "The bank has also agreed to work with us to facilitate a diaspora bond, which will be open to Zimbabweans living abroad and other investors." The government says it needs $10.9 billion to rebuild their economy, which has been eroded by years of hyper-inflation and contraction. The government plans to issue a bond by July. The new funding adds to the existing $528 million the country has already secured from the Common Market for Eastern and Southern Africa (COMESA) and neighbours South Africa and Botswana to revive its manufacturing sector. The International Monetary Fund partially lifted the suspension of technical assistance to Zimbabwe  on May 4. The Fund stated it would help Zimbabwe with tax policy and administration, payments systems, banking supervision and central banking governance.

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