R13bn loan allows Zim to pay bank debts

ZIMBABWE says it has cleared its debt to the World Bank and the African Development Bank – key steps to resume loans from the International Monetary Fund.

The Independent in Harare reported yesterday the loan had come from global commodities firm, Trafigura which has lent about R13 billion to clear Zimbabwe’s arrears at the World Bank and African Development Bank.

In the last two months,Trafigura, from its Geneva headquarters denied that it was funding Zimbabwe.

Finance Minister Patrick Chinamasa released a statement at the end of the week which said that repayment of these debts would attract longterm and domestic investment.

“The ter ms and conditions of the facilities that the Reserve Bank of Zimbabwe have put in place to repay the debt arrears to the World Bank and AfDB have been scrutinised and adjudged by the affected IFIs and found to be reflective of current market conditions with financing terms similar to market transactions recently concluded by several sub-Saharan African countries during 2016 and 2017.

“It is on this basis that Zimbabwe can now proceed to repay its debt arrears,” according to the statement.

He said repayment of the debts could “open the door to foreign finance inflows and possible debt treatment by the Paris Club and non-Paris Club bilateral creditors through an IMF financing programme”.

Chinamasa did not say where the loan was from and John Mangudya, central bank governor, said the loan was from a “consortium” of banks.

Zimbabwe cleared its debt with the IMF late last year.

The infor mation about Trafigura’s loan to Zimbabwe leaked out from Washington financial circles this week.

Australian Andrew Weir is chief executive of Trafigura which operates out of Geneva. South Africa’s Chris Cox, is on Trafigura’s board.

Trafigura acquired Sakunda Energy in Zimbabwe via its South African subsidiary, Puma Energy, Africa Confidential reported in 2014. – IFS