$500k debt hampers Zim-Iran relations

via $500k debt hampers Zim-Iran relations – NewsDay Zimbabwe August 3, 2015

Bilateral corporation between Zimbabwe and Iran has been hampered by Harare’s failure to settle debts owed to Tehran amounting to 16 million euros, NewsDay can reveal.

BY SILENCE CHARUMBIRA/EVERSON MUSHAVA

This comes after local officials conceded that the relations have been bearing less than expected.

According to minutes of the eighth session of the Joint Permanent Commission between Zimbabwe and Iran in possession of NewsDay, “both countries emphasised the requirement to make the final draw-down of the balance of the Official Development Aid ($500 000) funds extended to Zimbabwe by Iran under the Motira tractor project.

“The commission noted the agreement by CBZ (Bank), the Ministry of Finance and Economic Development, and the Export Guarantee Fund of Iran (EGFI), to reschedule the repayment of the loan over a period of five years. It also welcomed the first payment of 1,5 million euros which was made in May 2015, and another payment of 700 000 euros expected to be made in September 2015,” the minutes read.

The commission noted the willingness by EGFI to cover new credits extended to Zimbabwe and urged new applicants to make future payments on time.

The minutes said the two parties also agreed to focus on few but achievable projects that were mutually beneficial to both countries.

Foreign Affairs permanent Secretary Joey Bimha last Tuesday conceded that financial constraints had hampered the two countries’ corporation.

The two countries currently have several memoranda of understanding and Bilateral Investment Promotion and Protection Agreements that stagnated because of Zimbabwe’s failure to honour its dues.

Foreign Affairs minister Simbarashe Mumbengegwi last week said trade between Zimbabwe and Iran was lower than anticipated.
Mumbengegwi was speaking on the side-lines of the closing ceremony of the session at the Rainbow Towers in Harare.

He said the low trade was as a result of failure by the two countries to conclude most of their bilateral investment agreements.

“We still have to sign a trade agreement and that is a very important document and we also still have to finalise the Bippa because that is also very important in stimulating trade between our two countries since it encourages investment in both our countries. So these are areas we need to attend to in order to be able to increase our volumes of trade,” Mumbengegwi said.

He said the Bippa had to be renegotiated on account of setbacks caused by the land reform programme.

COMMENTS

WORDPRESS: 3
  • comment-avatar

    ROFL! I nearly choked on my beer, laughing

  • comment-avatar
    mandevu 7 years ago

    we owe money to just about every country in the world

  • comment-avatar
    Tinomunamataishe 7 years ago

    These were the tractors that were given for free to Zanu PF supporters without even thinking that the money had to be repaid. Now that they are failing to pay they are spoiling a relationship with one of their few remaining friends.

    To make matters worse these tractors did not last long as people used them recklessly, never maintained them properly and didn’t care as they considered them to be freebies.

    Now Mugabe and his cronies must pay back this money to Iran because they were the only beneficiaries of this scheme.