Reggie Saruchera, Air Zimbabwe administrator has revealed that the airline is currently conducting talks with Government to conclude a debt assumption process.
The airline owes US$30 million to foreign creditors while nine Government-related firms are owed $292 million.
In a notice to all creditors last week, Saruchera said:
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The debt assumption is a prerequisite to the turnaround of the airline and the coming on board of a strategic partner.
Engagements are currently underway with the Ministry of Finance and Economic Development to finalise on the debt assumption process.
The airline is also engaging potential strategic partners and investors to enhance future sustainability and competitiveness of the airline. Last week Tuesday, Air Zimbabwe received its Embraer ERJ 145LR on Tuesday last week. The aircraft was said to be very essential for the airline’s turn around strategy.
Several organisations, chief among them, ZIMCODD, previously slammed the government over the assumption of debts without consulting the public who are the taxpayers. Recently, the government was contemplating assuming the TelOne debt which dates back to the 1990s.
The major argument by critiques is that the loans are misused by people of great influence.
- ZIMCODD Challenges Government To Be Transparent On Debt
- Debt Accumulation Threatening The Sustainability Of Public Debt – World Bank
- Government Set To Inherit TelOne Debt
More: The Herald