23 July 2014
   
New Zimbabwe Header
Missing swimmer’s body found in the UK
Dollarisation pensions hit, govt plans probe
SA rivals hit back at Trevor Ncube
Chinese nabbed with 33,000 ammo rounds
Bob forced to reverse illegal appointments
Catholic priest conned by CIO imposter
Man axes wife to death over prostitute
ConCourt voids Bob's defamation law
MORE NEWS
Mining royalties surpass target by 45pc
Investors bypass indigenisation law
MORE BUSINESS
Uhuru seminar on family and migration
Vagina Monologues writer visiting Zim
MORE SHOWBIZ
Dynamos seek Jaure replacement
Knee injury forces Jambo to retire
MORE SPORTS
HIV: changing ourselves, changing others
Zim: With clowns as leaders, buffoonery rules
MORE OPINION
 
Dr Chireka: Let's visit our doctors in time
Zimbabwe and the ‘Papa’ phenomenon
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