Zimbabwe borrows Sh99 billion from African banks
SEE ALSO :Zimbabwe to compensate white ex-farmersThe loans, which would be repaid from future gold earnings, have a tenure of between three and five years and attract an interest of up to six per cent above the Libor rate, Mangudya said. Gold is Zimbabwe’s single biggest mineral export earner, accounting for a third of its Sh420 billion ($4.2 billion) earnings last year after a record output, central bank data shows. “These loans are well-structured facilities contracted last year. They will be paid from future (gold) export receivables,” Mangudya told a parliamentary committee. The Central Bank takes 45 per cent of dollar sales from gold producers and a half from other miners to fund imports like fuel and power and repay foreign loans. But the miners only have 30 days to keep their dollar balances in local foreign currency accounts, after which they must sell them.
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