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05 Mar 2019, Gergana Bencheva, EMIS Editor

Zimbabwe's Reserve Bank borrows USD 985m from African banks

Zimbabwe's Reserve Bank has borrowed a total of USD 985 million from a number of African banks to pay for fuel and other critical imports, Business Report said citing its governor John Mangudya. The country’s central bank was forced to make the move as its current reserves could cover imports for four weeks only.

For example, the African country’s Reserve Bank has borrowed some USD 641 million from the African Export and Import Bank, and some USD 152 million from Eastern and Southern African Trade and Development Bank. The loans would be repaid from Harare’s future gold earnings and have a tenure of between three and five years.

Zimbabwe turned to the African lenders as it would not get funding from institutions such as the International Monetary Fund (IMF) and the World Bank due to arrears of over USD 2.4 billion. Its central bank’s current reserves account for merely USD 500 million, Business Report noted.

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