Zim raises $250m from Belarus, PTA Bank

Source: Zim raises $250m from Belarus, PTA Bank – NewZimbabwe 09/05/2016

HARARE: Zimbabwe is negotiating with the Preferential Trade Area (PTA) Bank and the Development Bank of Belarus for funding to capitalise the recently established Zimbabwe Consolidated Diamond Company (ZCDC), central bank governor John Mangudya told Parliament on Monday.

Government this year established ZCDC after it shut down diamond companies operating in the country’s Marange diamond fields after they refused its proposals to nationalise the industry.

Mangudya on Monday told Parliament’s committee on finance that government was negotiating lines of credit to fund ZCDC and other mining activities.

“We have been negotiating facilities with the PTA Bank, Afrexim Bank, Development Bank of Belarus and we have found some lines of credit that we are providing to the artisanal miners and the bigger mining firms. We have raised $250 million towards the mining sector but it is not sufficient,” he said.

“We are organising funding so we can get some equipment for the Zimbabwe Consolidated Diamond Company for then to expand their production. ”

Last week, mines minister Walter Chidhakwa told The Source that about 270,000 carats of diamond have already been auctioned under ZCDC. Government intended to eventually increase ZCDC’s monthly output to a million carats, he added.

Mangudya said the central bank’s latest measures to boost export income — a five percent export incentive backed by the $200 million Afreximbank facility to be paid out to exporters in bond notes — would go a long way to promote exports and curb the smuggling of the minerals from the country. The bond notes would also only circulate in the country, to prevent cash flight from the country which has left the country in the grip of a liquidity crisis.

“We need to put more money in the mining sector that is why we are putting an incentive because we want to promote exports.”

 

COMMENTS

WORDPRESS: 4
  • comment-avatar
    nelson moyo 4 years ago

    ha ha – Development Bank of Belarus has total assets of 48 million Belarussian roubles – thats equal to about US$ 2800 only – and now they are going to lend Zimbabwe US$ 250 million – too much mbanji smoking and dreaming in the Reserve bank of Zimbabwe i think !

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    Nobody is going to let these clowns have a cent. The only time any bank will let them have any further funds will be a “Paper transaction” where the bank increases the existing overdraft to cover bank charges so the account does not have to be classed as in default.

  • comment-avatar
    nelson moyo 4 years ago

    Belarus – a few facts – impoverished country in Eastern Europe.

    The main thing to worry about Belarus (outside corruption of course)
    is the fact that it is only about 400 kms from Chernobyl – the famous nuclear plant that blew up in 1986 during the time of Russian control over all these parts of the world.

    Four hundred times more radioactive material was released from Chernobyl than by the atomic bombing of Hiroshima – and 60% of the radio active fall out from Chernobyl landed in Belarus.

    Do remember Zimbabweans to use your geiger counter for anything that you may buy from these Belarussians

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    5% export incentive paid out in bond notes — will only undermine the toilet paper industry in zimbabwe