EU Bank starts Zim loans, but not to govt

via EU Bank starts Zim loans, but not to govt. newzimbabwe.com 13 June 2014

THE European Investment Bank is considering extending loans to Zimbabwe’s private sector, more than a decade after the EU slapped sanctions on President Robert Mugabe’s government over charges of human rights abuses and vote rigging.

The bank will not lend directly to the government until the issue of more than 300 million euros in outstanding arrears is resolved, EIB head for the African, Caribbean and Pacific region (ACP) Diederick Zambon said on Thursday.

Zambon declined to say how much the loans would be worth, but told journalists the EIB would meet local banks and businesses to discuss their financial needs. It would also discuss the arrears with the finance ministry.

“The way we would like to return in the country, and where we see our role, is for the moment with the private sector,” Zambon said.

“We will work through banks and that reinforces the financial sector, which is in need of reinforcement.”

The European Investment Bank is owned by EU member states and provides 1.5 billion euros in new loans every year to ACP countries.

The World Bank, International Monetary Fund and traditional Western donors have withheld support to Zimbabwe since 1999 and the country is saddled with around $10 billion in foreign debt.

Relations with the EU have however thawed in the last few years, despite a dispute over a national election won by Mugabe’s Zanu PF party last July. The bloc has removed all Zimbabweans except the veteran leader and his wife from its sanctions list.

The EU, which has for years preferred to work with charities in Zimbabwe, is expected to hold a meeting in November that could pave way for directly channelling development aid to the government from 2015.

 

COMMENTS

WORDPRESS: 9
  • comment-avatar
    Bloody agent 6 years ago

    Oh please just stay out of the country until zanupf is extinct.

  • comment-avatar
    Bloody agent 6 years ago

    By the way, newzimbabwe [the news source here] is a zanupf mouthpiece.

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    Petal 6 years ago

    and as usual these charities are ommitting to assist the mixed race people and the caucasians EU wake UP

  • comment-avatar
    Mseyamwa 6 years ago

    How private is Zim’s private sector? Those businesses that remain in operation, I mean. EU may be skipping govt and putting the money straight into the pockets of individual looters.

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    saundy 6 years ago

    The EU needs to be extremely discerning as some of the C.E.O.’s could well be ZPF sympathisers. I have been in their company where their denigrate ZPF but praise it when in different company. Furthermore the EU will need to closely monitor how these companies manage their finances as many C.E.O.’s will look after themselves first.

  • comment-avatar

    I wouldn’t give to government either. Does anyone know that fate of thieves and liars in the Word of God. maybe us zimbo’s should take a look. Oh yes and covertousness and then try reading Micah ch 2

  • comment-avatar
    Roving Ambassador 6 years ago

    I would like go know which institution is not ZANU or does not have ZANU maggots in its top echelons.
    The money is going straight into the looters pockets.
    Be warned ,any future government will not pay for this.

  • comment-avatar
    Wilbert Mukori 6 years ago

    Although the loans are given to the private sectors it is the regime that will benefit the most. The private companies will use the loans to pay for the ballooning ZESA bills, for example; which will only encourage the regime not to address the underlying causes of the ballooning bills. Of course this cannot go on forever.

    The indirect loans to the regime will only encourage Mugabe to do nothing about the economic and political reforms the country needs to move on.