G7 LOAN TO BOLSTER ZIMBABWE’S CREDIT LINES
By Dean Jombo
Presidential Advisor and Economist Edward Cross says the move by the Finance and Economic Development minister Professor Mthuli Ncube to borrow money from the Group of seven (G7) will benefit the country to a greater extent.
In an interview, Mr Cross told Classic263 that if Zimbabwe manages to borrow money from the G7 it will be a major development and the move will benefit the country immensely.
“It’s a major step forward for Zimbabwe. I heard that there is a European State that is willing to help us out and if they manage to help us it will be a major development” said Cross.
Mr Cross also said that if the country borrows money it will be able to pay its long overdue debts. He added that the Zimbabwe would benefit from a new liability which will be formed between Zimbabwe and multi lateral lenders.
“After borrowing the money the country will manage to pay its debts to its creditors and there will be a new liability which will be extended for a period of 25 years at a lower interest and more benefits around,” he said.
Mr Cross’ sentiments follow reported moves by the Finance and Economic Development Minister Professor Mthuli Ncube to borrow money from the G7 in order to clear debts from the African Development Bank (AFDB) and World Bank.
Professor Ncube also said that after clearing the debts to the multilateral financial institutions, Zimbabwe will be able to source for a US$ 1 billion package from its creditors to repay the G7 loan.
The G7 consists of the wealthiest countries in the world Canada, France, United Kingdom, Germany, Italy, Japan and the United State of America.