Mboweni says no Zim loan yet

PRETORIA – South Africa’s central bank has not yet finalised a loan deal to help its struggling northern neighbour Zimbabwe, although talks are continuing, Reserve Bank Governor Tito Mboweni said yesterday.

“The discussions are ongoing, there is no conclusion that I am aware of as far as the Reserve Bank is concerned,” Mboweni said in reply to a question at a news conference. Mboweni said media reports that South Africa could be prepared to lend President Robert Mugabe’s government as much as US$1 billion (N$6,5 billion) were exaggerated, but did not give any other details.South Africa’s cabinet this month agreed in principle to help Zimbabwe.Donors and institutions such as the International Monetary Fund have withheld financial aid over policy differences with Mugabe’s government, and the IMF could move to expel Zimbabwe next month over unpaid arrears of US$295 million.Mboweni said there had been regular meetings between officials from the South African Treasury and Central Bank and their Zimbabwean counterparts on many issues, including the proposed loan.”The discussions have centred on what policies need to be undertaken in Zimbabwe to help boost economic performance, contain inflation, bring about a more stable exchange rate and improve productivity,” he said.Discussions have also examined ways of preventing Zimbabwe’s expulsion from the IMF, Mboweni said.- Nampa-ReutersMboweni said media reports that South Africa could be prepared to lend President Robert Mugabe’s government as much as US$1 billion (N$6,5 billion) were exaggerated, but did not give any other details.South Africa’s cabinet this month agreed in principle to help Zimbabwe.Donors and institutions such as the International Monetary Fund have withheld financial aid over policy differences with Mugabe’s government, and the IMF could move to expel Zimbabwe next month over unpaid arrears of US$295 million.Mboweni said there had been regular meetings between officials from the South African Treasury and Central Bank and their Zimbabwean counterparts on many issues, including the proposed loan.”The discussions have centred on what policies need to be undertaken in Zimbabwe to help boost economic performance, contain inflation, bring about a more stable exchange rate and improve productivity,” he said.Discussions have also examined ways of preventing Zimbabwe’s expulsion from the IMF, Mboweni said.- Nampa-Reuters