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EU Rules Out Lending To Zimbabwean Government, Public Sector

EU Rules Out Lending To Zimbabwean Government, Public Sector

The European Union (EU) has blacklisted the Zimbabwean government and public sector from accessing loans from its financial institution.

The EU is concerned that Zimbabwe may fail to repay loans due to its currency volatility and failure to service an external debt of over US$10 billion.

Zimbabwe the EIB over US$300 million.

The EU Ambassador to Zimbabwe Timo Olkkonen said that EIB can advance loans to the private sector and not the government and the public sector.

He was speaking to Business Times at the recent signing between the European Investment Bank (EIB) and First Capital Bank. Olkkonen said:

The fact that because of the arrear situation in Zimbabwe, the EIB is not able to do public lending in Zimbabwe.

… There are issues around security and ownership tenure of land in the agriculture sector which I know is a cause for concern but there are some discussions which are ongoing.

There are some issues like the level playing field in terms of investments and corruption which are also cause for concern in Zimbabwe.

Olkkonen said there are some economic and structural reforms that Zimbabwe has to implement in order to attract investment in the country.

Meanwhile, European Union Delegation to Zimbabwe head Bernard De Schrevel said the private sector has exhibited good traits that are different from the public sector. Said Schrevel:

The reason we are not extending the credit lines to the public sector is due to the arrears that are yet to be resolved in years.

He was speaking on the sidelines of the NMB €12.5m signing ceremony, Agriculture, Private Sector and Trade.

More: Business Times


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79 Comments

Sekuru Zimba 3 days ago

Aizve nyaya yakapfavazve iyi vazukuru...shuwa munhu ungasvika pane buri wowedzerazve buri Riya panzvimbo yekurivhara ah? Zvakaoma izvi


mdala loli pop 4 days ago

ko takukumbirireiko mari dze varungu isu tichigara tichiparidza kuti havana kunaka . Tinozvinyadzisireiko tichidai so.


cde chipopi 4 days ago

guyz musashupane nana blue ava. Ndivo varikuba mari dze hurumende vachidya ne nzenza dzavo . Thats is why he is a defender of nonsense.


Chawabvunza 4 days ago

No institution would want to lend money to Zimbabwe because it does not pay back. IMF, WORLD BANK and AFRICA BANK all at one time or the other lent money to Zimbabwe. Those loans are still outstanding. Zimbabwe is a bad debtor.

MARI IKAKWERETESWA ZIMBABWE YAKANDWA MUKANWA ME SHUMBA.

NGAAPINDE HAKE CHAMISA [NHC].

[VOTE CCC FOR REAL CHANGE].


Joe Brownn 4 days ago

who would want to give money to a corrup
t Zanu-PF regime which is busy financing it's terrorism activities. If the EU give us money like for example, $200USD million, ED will steal USD $ 50, Generari will steal $40 ..


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Tkt 4 days ago

@Gafa... Where are you Bro, wachinzwa here chaputika chaSISI vako RESPINA? Haaa thc time ndoda kuona kuti anopa buda sei apooooooooo


Blue 4 days ago

Ini blue handina kukwana zvangu


Jah🇿🇼Tsvarie-07 4 days ago

Zimbabwe has enough resources to bail itself only if those resources are properly channeled.
Imagine a poor country with the richest citizens with unexplainable wealth 😂

GOLD FARMERS...


CORRUPTION 4 days ago

CORRUPTION

CORRUPTION

CORRUPTION

CORRUPTION

CORRUPTION

CORRUPTION

CORRUPTION

CORRUPTION

CORRUPTION

CORRUPTION

CORRUPTION

t 4 days ago

hey


Looking for 4 days ago

Where is the Bush lawyer kufa kwangu zvarova, the guy aitaura like @machiaveli. God bless you guys. Not forgetting @blue @vybz u keep Pindula hot.


Machiavelli 4 days ago

Paid by whom? (for my part only).
I am self employed (and employ 3 others full time + several others part time)

Gringo 4 days ago

Those guys are paid to spend the day commenting.

bvanyangu 4 days ago

any sane person should love his country's currency as long as its got value against other currencies. for this to happen a country must be productive and export to earn foreign currency. anything else is fiction.


Tumuira Tidye 4 days ago

Vana vaMrs vachade nemari yavo!


NGAVARAMBE BHAMBI RAKAVAVHARA RICHITI HE REPRESENTS CHANGE 4 days ago

🥨 THE ONLY CHANGE YATAONA KUSONESA MA SCARF NEKUITIRA VANA MUCHIBAGE

BABA VA BLUE💙 4 days ago

Dai ED MNANGAGWA ne company vakanzi ndivo ngavatungamire ma Israelis kubva Egypt kuenda Cannan handifungi kuti pane 1 aisvika arimupenyu aiuraya achiba chikafu chimwe achiputira pa scarf, hapana kwatiri kuenda varume CHAMISA NGAAPINDE ZVAKE TIMBOONA


KKK SAY THAT AGAIN 4 days ago

🥨. SKOPRIKIHO IS HEARTLESS. HE'S SORROUNDED BY MARAUDING LIONS READY TO EAT EVERYTHING FOR SURVIVAL. NRZ VAKAURAYA KUTI VAITE MAGONYETI. ZESA KUDHAKISA KUTI VATENGESE GAS. ZISCO KUVHARISA KUTI VAPINZE MA CHINA ANOTENGESA MITOBVU. AT ONE POINT LICENCES TO IMPORT BASIC COMMODITIES WERE ISSUED BY THE GVT TO AFFORD MPHOKO AND A FEW OTHERS NO COMPETITION AT ALL. MINDA YEMA ORANGE VAKURIMA CHIBAGE. VAMWE NDOVANORIMA SORA. EVERY INDUSTRY YAIFAYA KUNGOTORA NEKUSIYA ZVADHAKWA. IT HAPPENED KU ZUPCO. KUPARADZA MOTA DZEVANHU. HAKUNA MHONDI DZAKADAI DZINOPINZA VANHU CANAAN.

EVEN THE USA NEEDS DEBT. DUMB PEOPLE THINK DEBT DOESN'T MATTER 4 days ago

🥨 FAILURE TO SERVICE LOANS IS AS A RESULT OF POOR GOVERNANCE.TOO MUCH LOOTING AND MISAPPROPRIATION OF FUNDS.


Pragmatist 4 days ago

Do you think Zimbabwe is seriously progressing economically, industrially or politically (towards democracy) under ZanuPF gvt!
These are the fundumentals of a functioning state

@blue AKABOORA CUP NDIANI BECAUSE ZANU PF IS THE ONLY GVT WE KNOW SINCE 1980 4 days ago

🥨 THE PEOPLE WHO CREATED PROBLEMS THINK THEY CAN SOLVE THEM BY CREATING FURTHER PROBLEMS. THESE LOOTERS HAVE A HIGHER PROPENSITY TO DEVOUR EVERYTHING MEANT FOR CITIZENS. ED ANODYA NE PORRIDGE REVANA. SENDING HIS PROXIES VANA JULY, TINMAC ETC

Blue 💙 4 days ago

Ehezve, asi haudire mvura mu cup yakabooka, you fix the hole first. Hazvisirizvo here?

Anyways vote Zanu PF. Brick by brick, building the Zim we want

Asalif 4 days ago

We where once given these loans bullion guaranteed but now you don't want them to come over and see the bullion so hw can they give you money when you don't have any gold at the Reserve bank


Economics Soceity 4 days ago

So problem yedu is failure to service the country's external debts.Ko Chamisa akapinda anoiwanepi mari to pay zvikwereti zvakasiiwa na Mugabe?


Blue 💙 4 days ago

Exactly. Those are the issues we have in Zim. We need to fix those problems then, in my own mind, it would be cool to loan as much as we like. In the meantime l wouldn't fret about it.
Anyways, vote Zanu PF and let's build the Zimbabwe we want.

Machiavelli 4 days ago

Why haven't we been able to service those loans? Basically because we live beyond our means, too many revenue leakages, low productivity, high levels of corruption, poor planning, low exports, inadequate inflows of capital in all its forms etc. Basically our economic fundamentals are wrong

Asalif 4 days ago

There is no country which cannot survive without these loans let's not bite about the bush even developed countries benefit from them that is why there is World Bank


gire 4 days ago

@Dr Kiki, the only solution mugabe got from the east was his casket

Dr Kiki 4 days ago

Turoo is talking nonsense if China,Russia, and other communist countries are the solution and you ve been singing the Look East song for the past 2 decades how come you have nt found a solution. Stupid suggestion . Your grandfather Mugabe said he d find solutions in the East look how it turned out. There is nothing in the East just empty promises

Dkhd 4 days ago

Zvinoita here kuti ukweretese munhu wa unoziva kuti ane zvikwereti nana nhingi. Help me

VOTE THIEVES AT YOUR OWN PERIL 4 days ago

@Blue we're suffering because of the problems they created over the past 42years. Accountability issues have dented the performance of ZANU gvt. As long as the COMMANDER IN CHIEF OF THIEVES remains at the helm, the future of Zimbos is shrouded into uncertainty.

Blue 💙 4 days ago

@ Turoo listed a few countries we can borrow from down there, and the reason we aren't getting any is because we can't service the debt we already have and that's because of the reasons you listed up there.

Machiavelli 4 days ago

@Blue please tell us who those are that can lend us money? And why haven't they lent us any sho far?

Blue 💙 4 days ago

Yes, every country inotodawo kutora zvikwereti but that isn't the major worry. It is the ability to repay those loans that is crucial bro. There are economic issues and holes that need to be fixed first in Zim before worrying about some gays who won't wanna give us credit. Besides havasirivo voga vanokwanisa kutipa zvikwereti baba.
Anyways, the private sector is still eligible for credit sooo...

Chawabvunza 4 days ago

It's funny how some people think that if we do not have European money that it's the end of the world. Europes money which the types of Machivelli moan about is African money which has been stolen through corrupt and blood thirsty means

#NYIKA INOVAKWA NEVENE VAYO
[PAMBERI NE ZANU PF]


Machiavelli 4 days ago

As you say it maybe African money, or it maybe Asian money (remember Europe also colonised Asia), but the fact of the matter is they control the money market as we speak. Orogenenesis of the money is immaterial. Western nations control world money markets. Period. Without it we are F.u.c.k.e.d

Machiavelli 4 days ago

We have been side tracked by @Blue and company from discussing the real issue at hand.

What the European Investment Bank (EIB) is saying is that in the foreseeable future we can kiss funding from the EIB and EU goid bye. And we must bear in mind Multilateral Lending Institutions take cue from one another. If EU says no funding for Zimbabwe, then The Paris Club will follow suit. We owe The Paris Club huge arrears as well. The IMF and World Bank have already indicated that further loans are a pipe dream. With the USA's position as articulated in RIDERS USA, WB and IMF are already closed.

Pathetic little sums from AFREXIMBANK, PTA Bank etc are nowhere near rescuing us from the Debt Trap we find ourselves in. To make it worse we continue to antagonise those nations that are likely to bail us out. Our alignment with Russia in the ongoing Russo-Ukraine conflict is another short-sighted diplomatic gaffe that will continue to strangle us economically


Blue 💙 4 days ago

True @ Kartel. Patience is the name of the game. You don't pull rabbits out of a hat on such a issue. It's even difficult to deal with these issues especially with a people who reject their own currency, craving for some money we cannot print nor control.

Asalif 4 days ago

@Machiavelli you left Africa Infrastructure Development Bank which loans town and city councils NSSA was the guarantor and those monies where kept there then when a town go to them asking for the money which it borrowed the funds will be nowhere to be found but towns and cities are paying for the loans the projects which they borrowed the funds for will just lie idle

VYBZ KARTEL 4 days ago

Well the leadership is there now but you want it to do a hokas pakas and flip it over night have patience bro.

Machiavelli 4 days ago

@VYBZ, that is bull dust. Mugabe blamed Smith and colonialism, so the Second Deception is blaming Mugabe... the blame game continues. When are we going to break out?

Mozambique has managed to turn itself around so has Zambia. All it takes is leadership.

VYBZ KARTEL 4 days ago

The previous Gvt had to many bad debts now this gvt is trying to correct the wrong.

Blue 💙 4 days ago

Thumbs up @ Turoo.

Blue 💙 4 days ago

@Machiavelli, Zim's major problem is not getting credit 💳, its servicing those debts that's the problem. We paid the Paria Club last year for the first time in over fifteen years l believe. We might do good with less debt. Zim needs to find ways to open that sink cork and clear the debt.
Besides, all those entities you listed are not the only line of credit in the world.

Turoo 4 days ago

Zviri nani kutamba neRussia, China, Turkey, UAE neIndia coz zvekuzomanikidzwa chingochani nanaUSA hatidi

vanotenga zvigumwe 4 days ago

its only that generari vachiri kuhoneymoon kana vadzoka EU will rethink redo rewrite


dispenser 4 days ago

it's obvious that lending Zimbabwe ,mari yacho importers mumhepo ne corruption


Putin 🇷🇺 OG 4 days ago

Blue ndizvo, nyika inovakwa nevene vayo 🇿🇼🇿🇼🇿🇼🇿🇼🇿🇼🇿🇼 hallelujah God bless you all............ Siya ✊✊✊


Purse 4 days ago

Iwewe uri **** vene venyika iwewe usada kuita propaganda dzezanu pano uchikwesha **** encdai kutwitter ndokune vene vayo chaivo

Blue 💙 4 days ago

So much cyber bullying...


Anti-Ed 4 days ago

Murakashi..he is paid to do that

Kudakwashe Mahachi 4 days ago

You are the chief architect of cyber bullying here on Pindula by always going against views and opinions of the majority.

BABA VA BLUE 💙 4 days ago

Blue💙 mupengo handinyepe ba mwana wangu wandaka zvara


ಠ_ʖಠಠ_ʖಠಠ_ʖಠ 4 days ago

blue ane ****ual dysfunction akatombouya kwandiri achida guchu

BABA VA BLUE💙 4 days ago

Unoda kuvhenekwa njere dzake nevanoziva zveshuwa dzoonekwa kut dzakakwana hr zvaanotaura hapana kana zvine musoro kana ndofunga kuti akunatira ma pampa chaiwo

Dr wa Blue 4 days ago

Stick to your lane old man.Leave clinical psychologists to do their work.
Blue's problems are all emanating from the lower part of his body.

Tintin 4 days ago

doctor ko kungomupa mapiritsi emapenzi tichifanotsvaga kamachine kebrain scan hamukwanise?


Dr wa Blue 4 days ago

He is already on Viagra for another medical condition. We don't want to complicate matters, you know drug interactions etc etc

Chimboti Pizza 4 days ago

That's one of the main reasons why dollarisation can never happen, hatina kwekukwereta maUSD acho ekudollarise. Plus if we dollarise tomboti tawana kwekukwereta mari yacho, tinenge tichizvipisira hozi coz after a few years maUSD acho anozongopera then kwekukwereta futi haukozowanike coz unpaid debt yenyika inenge yakurisa.

LET'S EMBRACE AND SUPPORT OUR OWN CURRENCY

PAMBERI NEZIMBABWEAN DOLLAR


Kk 4 days ago

Wataura dama iwe

Dr wa Blue 4 days ago

@Tintin: Mwange musina kuita specify kuti munoda kuti Blue aitwe scan brain.
Hatinaba ka machine kanoita check brain saka my advice is tambai naye zvakanaka.


Purse 4 days ago

Vene vayo corruption dzega dzega


Thor 4 days ago

Government yedu ndeye mujolo chete


EU Advisory 4 days ago

Corruption in Zimbabwe is now a national issue.
Removal of Mnangagwa will not automatically end corruption.Do not create unrealistic expectations.
The issue goes much deeper than the current government.


Blue 💙 4 days ago

There's no perfect society in this world.

ABSA 4 days ago

I don't think ED and his colleagues do care it wil not Stop them from corruption vanongoba kuma diamonds &gold.only them benefit not the nation.


Tintin 4 days ago

pamusoroi hama munhu anonzi blue💙 akakwana?


Tintin 4 days ago

hayas blue 💙 mupengo chimbwa mupengo chikava nani.

Hameno 4 days ago

Inini semuona kwangu vakambofa vakamuka coz munhu muhenyu chaiye haite sababa ngatiregedzei kunetswa nechitunha iyi yatongozi yapinda mumusha

Zuze 4 days ago

Doctela, kana zvichinzi munhu akakwana here vari kubvunza kuti mumusoro dzirimo dzese here, kwete kuti and maoko, makumbo, nzeve kana nzvimbo.

Maonero angu ndeekuti Bhruu naDoctela wake same, same, dzakaburuka dzikatambiswa mahumbwe nevana. Hadzichadhonze zvakanaka. Tatenda

Blue 💙 4 days ago

Hezvokoo @Tintin 🤣. EU is not the only line of credit 💳. It's not the end of Zim's financial world.

Zuze 4 days ago

Doctela, kana zvichinzi munhu akakwana here vari kubvunza kuti pamusoro dzirimo dzese here, kwete kuti and maoko, makumbo, nzeve kana nzvimbo.

Maonero angu ndeekuti Bhruu naDoctela wake same, same, dzakaburuka dzikatambiswa mahumbwe nevana. Hadzichadhonze zvakanaka. Tatenda

Tintin 4 days ago

doc did u check his brain?

Dr wa Blue 4 days ago

The last time I checked Blue had all his body parts intact.
Manga matiiko komuredhi?


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