6 July 2015
   
New Zimbabwe Header
Zanu PF youths extort Hre residents
Prisoners’ pork, beef feared looted
Experts say Tomana likely staying
Renewal Team congress under threat
Hands off vendors, Mayor tells politicians
Nigeria: No cabinet a month after election
Matiza new Zanu PF Mash East chair
Two people killed in Byo lift accident
MORE NEWS
Bata workers on strike over allowances
CSC cattle herd almost wiped out
MORE BUSINESS
Soul Brothers lead singer Masondo dies
Rapper P Diddy avoids assault charges
MORE SHOWBIZ
Caps win as Bosso, Dembare are held
Warriors set up Lesotho date
MORE SPORTS
Business Class: The purpose of business
Why are female killers seen differently?
MORE OPINION
 
Norah Spie: Letter from Harare
US gay law: Wrong never became right
MORE COLUMNISTS
 
 
Kingdom warns Biti on IMF loan
22/09/2009 00:00:00
by Lebo Nkatazo
 
U-turn ... Tendai Biti
 
RELATED STORIES

FINANCE Minister Tendai Biti’s decision to delay the distribution of a US$510 million loan from the International Monetary Fund (IMF) until a new budget will slow down the pace of economic recovery, a leading financial institution said Tuesday.

In its weekly market report, Kingdom Financial Holdings Limited (KFHL) said Biti’s position could prolong the current liquidity crunch.

“With the Finance Minister saying the funds would only be used under a new budget … it may be another four months before the money is used as a new budget would only come into effect with the beginning of a new year,” KFHL said. “This may mean that the liquidity crunch will continue and it would take longer for companies to increase capacity utilisation to acceptable levels.”

Biti, after initially saying Zimbabwe will reject the loan because it cannot afford the interest on repayments, staged a major climb-down last week but insisted the money would only be used next year.

Biti said “the bulk of the money” would be used towards infrastructure development -- mainly roads, information communication technology, and water “but not anything in the short term”.

“Another amount would then be used for lines of credit for exporters. Another amount would then be used for budgetary support where we may use the money to have a one month window of let’s say US$60 million to meet recurrent expenditure,” the minister said.



Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark
 
 
 
comments powered by Disqus
 
RSS NewsTicker