Zimbabwe defaults on Chinese loan

ZIMBABWE has defaulted on a US$200 million Chinese loan used to procure farming equipment handed to farmers who however, failed to pay for the implements.

In her latest report, the comptroller and Auditor General Mildred Chiri said the Agriculture, Engineering and Mechanisation headed by Joseph made was at the centre of the transactions.

Chiri said steps should be taken to effect recoveries from the farmers in order to facilitate repayment of the loan.

The government's farm mechanisation scheme which was aimed at helping beneficiaries of the land reform programme make productive use of their lands is also blamed for the Reserve Bank of Zimbabwe's billion dollar debt.

Zimbabwe has also failed to pay interest on a loan Chinese loan advanced to the Zimbabwe Iron and Steel Company (Ziscosteel) in 1997 and this has blocked the release of a US$145 million China Import and Export Bank (EXIM Bank) facility for Harare city council.

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