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No loan talks with Zim - Manuel
06/06/2006 20:41 - (SA)
Cape Town - South Africa is not in talks with Zimbabwe's cash-strapped government for a financial package, Finance Minister Trevor Manuel said on Tuesday.
His statement contrasts with comments last month by deputy
foreign affairs Minister Aziz Pahad that Manuel and Reserve Bank
governor Tito Mboweni were continuing to discuss the possibility
of a $1bn bail out to President Robert Mugabe's government.
"No, I am not currently engaged in any talks with my Zimbabwean counterpart regarding a loan to Zimbabwe," Manuel said in a written reply to a parliamentary question.
"Neither has the South African government made any loan to Zimbabwe," Manuel said, adding that the central bank was also
not in talks with Zimbabwean officials.
Zimbabwe is in its worst economic crisis since independence
in 1980 marked by acute fuel and foreign currency shortages, and
an annual inflation over 1 000% - the highest in the world.
South Africa's cabinet last year approved in principle a
loan to help ease the economic crisis.
Zimbabwe has repeatedly denied asking for the $1bn loan, saying the issue was initiated by South Africa.
Critics say South Africa has been too soft on Mugabe, whom
they accuse of human rights abuses and economic mismanagement.
The veteran Zimbabwean leader denies the allegations, and in
turn accuses domestic and Western opponents of demonising him
and sabotaging the economy over his seizures of white-owned
farms.
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Zimbabwe Special Report
