Zim Negotiating With Afreximbank For US$1.5 Billion Loan To Guarantee Foreign Investments

The Reserve Bank of Zimbabwe (RBZ) is negotiating with the African Export-Import Bank (Afreximbank) to get a US$ 1.5 billion guarantee, to protect investors’ funds. RBZ governor revealed this information when presenting the 2018 Monetary Policy on Wednesday at the Central Bank. According to Mangudya, the guarantee will enhance the confidence of investors as their funds would be protected.

Said Mangudya,

Such guarantees and liquidity support are necessary to protect investors’ funds from country risk, and in doing so, enhancing investor confidence

The Afreximbank is the same institution which is behind the Bond notes which were introduced in 2016. The institution entered an agreement with the government of Zimbabwe, to back the bond notes which are supposed to be trading at par with the United States dollar.

More: Reuters