Maravi

(TALKZIMBABWE) 'Biti sitting on US$800m, stalling progress'

'Biti sitting on US$800m, stalling progress'
Floyd Nkomo
Wed, 07 Oct 2009 05:40:00 +0000

THE Ministry of Finance is sitting on US$800 million from the International Monetary Fund and Afreximbank meant for the revival of national economy, the Zimbabwe Guardian has learnt.

The Minister of Finance Tendai Biti is holding on to almost a billion dollar facility availed to benefit various sectors of the economy, a move slammed by critics as "treacherous".

Reserve Bank of Zimbabwe Governor Dr Gideon Gono said holding on to the money is frustrating resource mobilisation efforts by the inclusive Government.

Dr Gono said the Afreximbank facility of US$300 million was extended to the country in December last year but since a new Minister of Finance took charge not a cent of it has been used.

“The IMF funding of US$510 million and the already approved Afreximbank country facility of US$300 million amount to a total therefore, of US$810 million which can be foot to an immediate productive use through constructive engagement of the lenders,” said Dr Gono recently.

Zimbabwe’s industries are performing below capacity owing to shortage of lines of credit.

Under the Short Term Emergency Recovery Programme (STERP) industry is expected to increase capacity utilisation to 60% by year end.

Industry sources however say capacity utilisation has improved but still hovers around 25%.

Writing in an opinion piece recently independent MP for Tsholotsho, Prof Jonathan Moyo says Biti's actions are "treacherous" and "could plunge the country back into the abyss unless something is done to expose him and his external regime-change handlers."

Moyo says that business leaders in the country now question whether Minister Biti is a competent and serious minister of finance.

Labels: COLOUR REVOLUTIONS, GIDEON GONO, IMF, MDC, TENDAI BITI

posted by MrK @ 7:06 AM