IMF denies knowledge of Afreximbank loan which government says will back bond notes

Posted by Tayana

The International Monetary Fund (IMF) has denied any knowledge over the existence of a US$200 million facility from the African Export Import Bank (Afreximbank) which the Zimbabwean government claims will be used to back soon-to-be-introduced bond notes.

This comes amid fears Zimbabweans could have been deceived by government to believe the existence of a US$200m facility to back the surrogate currency when in fact the authorities will just be printing money into circulation. Government sources told the Zimbabwe Independent last week that there is no term sheet between the RBZ and Afreximbank on the US$200m facility backing the bond notes, raising eyebrows over the monetary issue.

A source interviewed by the Independent revealed,

The term sheet of the US$200m is unknown to the public and that ordinarily raises a lot of questions on such a facility. The salient features such as the tenure and how the regional bank will benefit from this facility has largely been shrouded in secrecy. What role did parliament play in this? All these questions beg for answers, given the quantum involved.

A term sheet serves as a template to develop more detailed legal documents. Once the parties involved reach an agreement on the details laid out in the term sheet, a binding agreement or contract that conforms to the term sheet details is then drawn up.

More: Zimbabwe Independent



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