Maravi

(NEWZIMBABWE) Gono says Biti stalling recovery

Gono says Biti stalling recovery
by
06/10/2009 00:00:00

RESERVE Bank governor Gideon Gono on Monday accused Finance Minister Tendai Biti of delaying the distribution of $800 million in donor funds, hampering the nation's economic recovery.

Gono told bankers that Biti's actions were "unjustified and unreasonable." The money should go to the manufacturing and production sectors, he said. Battles for the control over the treasury have hamstrung the unity government formed in February between President Robert Mugabe and Prime Minister Morgan Tsvangirai.

Gono is a top Mugabe loyalist whose monetary policy is blamed for fuelling the country's downward spiral, while Biti is a senior official in Prime Minister Morgan Tsvangirai’s MDC party.

Biti denied the charges, insisting that the funds need to be used to get social services such as hospitals and schools running again. He does not expect the money to be spent immediately, but after the next national budget expected in November.

Gono said the country was sitting on a total of US$810 million from the International Monetary Fund (IMF) and the African Export-Import (AFREXIM) Bank awaiting Finance Minister Tendai Biti’s authorisation for disbursement.

"IMF and AFREXIM Bank have advanced us a total of US$810 million that can be put to productive sectors and there is no need for it to remain on the table unused," Gono said.

He did not mention Biti by name. Meanwhile, Gono revealed 16 out of Zimbabwe’s 26 banks had managed to meet the new capital requirements threshold.

Under the RBZ capital requirements, commercial banks must have deposited US$6.25 million with the central bank by end of last month while another US$12 million has to be paid by March.

Labels: COLOUR REVOLUTIONS, GIDEON GONO, NEOCOLONIALISM, TENDAI BITI

posted by MrK @ 4:19 PM