China writes off Zim's debt

Harare - China has reportedly written off Zimbabwe’s debt to the Asian giant’s institutions paving way for more funding to the southern African country whose ability to access new funding has been crippled by among other things a huge debt overhang.

This is according to local radio station, ZiFM Stereo, owned by Zimbabwe’s ICT Postal and Courier Services Minister Supa Mandiwanzira, who also accompanied President Emmerson Mnangagwa on a state visit to China.

Using its twitter handle @ZiFMNews Thursday afternoon, the station said the decision was reached after meetings between Chinese President Xi Jinping and President Mnangagwa in Beijing.

President Mnangagwa is on a 5-day state visit to China where he has had meetings with his Chinese counterpart and has reportedly signed billion dollar deals including one of $1bn for upgrading a thermal power station.

Zimbabwe owes international lenders more than $10bn in both principal debt and arrears.

The country’s domestic debt has also been ballooning and is estimated to be more than $6bn.

This has seen the country struggling to get new funding from international lenders such as the IMF and the World Bank.

China itself has also been reluctant to fund Zimbabwe after the country failed to repay a $60m debt to China Export and Credit Insurance Corporation, known as Sinosure.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
USD/ZAR
14.05
0.0%
GBP/ZAR
19.67
0.0%
EUR/ZAR
17.10
0.0%
AUD/ZAR
11.03
0.0%
JPY/ZAR
0.13
0.0%
Gold
1,831.32
0.0%
Silver
27.45
0.0%
Palladium
2,929.64
0.0%
Platinum
1,256.50
0.0%
Brent Crude
68.28
+0.3%
Top 40
62,573
+1.4%
All Share
68,520
+1.4%
Resource 10
71,474
+2.1%
Industrial 25
86,856
+0.9%
Financial 15
12,711
+1.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 1387 votes
No, I did not.
52% - 3460 votes
My landlord refused
27% - 1836 votes
Vote