Zimbabwe is currently utilising its platinum exports to repay a $400 million loan from the African Export-Import Bank (Afreximbank), according to a report from the country's treasury.
Bloomberg cited Zimbabwe's Treasury's latest public debt report, revealing that the government secured a $400 million Afreximbank loan in February for budget support and trade infrastructure.
The six-year loan has a 10.2% interest rate and rises to 12.2% if defaulted.
The report revealed that the Reserve Bank of Zimbabwe manages 35% of Zimplats' export proceeds to repay the $400-million Afreximbank loan.
Zimbabwe's Treasury called the Afreximbank loan “a significant success” for the government, given that international lenders had ignored it for over two decades and limited its access to external finance, notably for budget support.
Harare introduced a new levy on lithium and wealth tax last week to cover an almost 14-fold increase in economic stimulus spending.
The hike follows Zimbabwe's dollar losing 89% of its value versus the US dollar this year and annual inflation topping 176% before price growth was lowered.
Zimbabwe has $18 billion in debt and is ineligible for new multilateral credit from the World Bank, IMF, and African Development Bank.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
