28 July 2016
   
NGOs say Mugabe is fanning terror
War vets secretary general arrested
EU court upholds Tomana sanctions
People's take as Mawarire opts for exile
Mandaza, Todd, Kagoro et al for caretaker govt
Mnangagwa leading new coup bid, Minister
I’ll rule for a long time, vows Mugabe
War vets leader held, home ransacked
MORE NEWS
Essar got fed up with govt and left, Min
Mimosa output seen at record levels
MORE BUSINESS
Zhakata takes new album to Mash central
Koffi Olomide jailed over assault incident
MORE SHOWBIZ
Highlanders fluff ascent to the top
Ntini: Zim waited too long for Tests
MORE SPORTS
War veterans must apologise for their sins
Britain must stop shoring up Mugabe
MORE OPINION
 
MDC-T VPs: Tsvangirai violated party rules
Wafawarova: Lets defend the revolution
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
 
Car shipping to Namibia, Zimbabwe, Botswana, Mozambique, South Africa and Zambia from UK
RSS NewsTicker