Zimbabwe’s Secures $500m Loan from Unspecified International Bank

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The Central Bank of Zimbabwe secured $500m loan from unspecified international Bank to ease dollar crunch.

Reserved Bank of Zimbabwe Governor – John Mangudya, said in his statement in Harare, March 16, that the loan is to ease  dollar crunch that had brought fuel and medicine shortage in Zimbabwe.

Mangudya said that the Central Bank would start to access the funds from Monday, 20th to meet the forex payment requirements of business and individuals which is expected to go a long way to stabilize the exchange rates and prices of goods and services in the economy.

As Zimbabwe tries to resuscitate a currency, trading system implemented In February that has been plagued by the lack of liquidity. Dollars have been scarce on the official market, where U.S dollar fetches 3.4 RTGS dollars, compared to 6.3 RTGS dollars in the black market.

The new currency lost 26 percent of its value on the black market in the past week but it is only 3.6 percent weaker on the official market.

Zimbabwe has not received funding from international lenders such as the IMF and World Bank since it defaulted on a loan repayment in 1999.

Zimbabwe has since relied on the Africa Export and Import Bank (Afreximbank) for foreign loans by mortgaging future gold export earnings.

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