Zimbabwe may borrow from private creditors to pay evicted white farmers
Government, which last month appointed London-based Newstate Partners to help it raise the money, needs to secure $1.75 billion (~R26 billion) by July next year to meet its obligations.
While the government is likely to press ahead with publicly stated plans to sell an international bond to finance the compensation accord, that option probably won’t be viable, said the person who asked not to be identified as the information hasn’t been disclosed publicly. A bond would be too expensive and need a guarantee from a multilateral lender that’s unlikely to be forthcoming as Zimbabwe hasn’t paid its arrears on more than $8 billion in debt, meaning it can’t borrow fresh capital from them.
Zimbabwe’s main exports include platinum-group metals, gold and tobacco.
Finance Minister Mthuli Ncube and his Permanent Secretary George Guvamatanga didn’t respond to calls and text messages seeking comment.
– With assistance from Godfrey Marawanyika and Ray Ndlovu.