Govt explains car loan scheme  - Zimbabwe Situation

Govt explains car loan scheme 

Source: Govt explains car loan scheme | The Herald December 5, 2018

Govt explains car loan schemeMr Guvamatanga

The Government will not allocate foreign currency to senior Government officials who will  benefit from the vehicle loan scheme, but will provide the money through  Real Time Gross Settlement in order to save scarce foreign currency, a  senior Government official has said.

In the past the Government bought senior Government officials condition  of service vehicles, but it recently scrapped the facility as part of  broader austerity measures.

Finance and Economic Development permanent secretary George Guvamatanga, said recently the affected officials would, however, be allowed to import  their vehicles duty-free.

“This is a very specific and targeted allowance to specific senior officials who previously were allocated condition of service vehicles by  Government which, as part of the austerity measures, we have since  terminated.

“So those officials will no longer have vehicles purchased for them by Government, so in turn we have replaced this with a car loan scheme,” he  said.

“And the car loan scheme is denominated in the RTGS  currency. It is not foreign currency.”

Guvamatanga added; “We are simply moving from buying and allocating a  vehicle to a selected number of very senior Government officials to then say we will give you a loan, and you service your own vehicle but at  least to make it better for you we will give you duty-free.”

He said those who would access condition of service vehicles were excluded from the duty-free scheme.

“So it is very limited numbers that is what I think I need to  emphasise,” he said.

Weighing in on the issue, Finance Minister Professor Mthuli Ncube said the Government was keen on leading from the front in the austerity  programme.

“We have not bought any minister vehicles so far. We have said this is  an issue which should be held in abeyance until such time we feel that  we, on the Government side, have done enough to show that we are meeting the citizens of Zimbabwe half way in carrying this austerity programme  together,” he said. — New Ziana.

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