25 August 2016
   
Chombo vows to crush demo, western agents
Judge to decide as ZRP block 'mega demo'
ZRP stop Pastors demo, arrest journos
MDC-T Youths: Evict all lodger cops
Gutu: Chombo an arrogant graft guru
Death and ruin at Zanu PF game parks
MDC-T: Zanu PF MPs condon ZRP brutality
Zim runs out of water as wells dry up
MORE NEWS
Bank workers picket BancABC offices
SA: FinMin sack to 'destroy economy'
MORE BUSINESS
Zim comedian Ncube breaks world record
World dance champion in Zimbabwe
MORE SHOWBIZ
Sundowns reject R25m offer for Billiat
Ex-Bosso defender impresses at Chiefs
MORE SPORTS
Command agriculture and its vile purpose
No messsiah please, just strong institutions
MORE OPINION
 
Strong coalition will send Zanu PF packing
Rutanhire’s pointless attack on Mujuru
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