Published: 14 April 2014

The Government has tightened screws on external loans as it seeks to avoid locking Treasury to terms that are difficult to service, a senior official in the Ministry of Finance and Economic Development has said.  

The requirements come into place as government battles a global debt of plus $6 billion and as Treasury assumes the Reserve Bank of Zimbabwe's $1.35 billion debt.

The Minister of Finance and Economic Development Patrick Chinamasa would be required to sign up on all external loans approved by the External Loans Co-ordinating Committee and ratified by Parliament in case of Government loans.

Private sector players requiring to borrow more than $1 million externally would be required to seek approval before the ELCC before accessing foreign credit.

For government external indebtedness, Parliament would be required to ratify the loans after approval by the ELCC.

The Permanent Secretary in the Finance and Economic Development Ministry Willard Manungo told Parliamentarians last week that the arrangements for borrowing were fairly tight.
- The Herald

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