News / Africa
SA Reserve Bank Governor in dark over Zimbabwe loan
17 Apr 2013 at 06:11hrs | Views
SOUTH AFRICA Reserve Bank Governor Gill Marcus has told Parliament that the central bank did not have a mandate to decide on the granting of a $100-million (about R900-million) loan to the cash-strapped government of Zimbabwe.
Marcus yesterday told the National Assembly's standing committee on finance that the Reserve Bank could not provide details around the granting of the multi-million loan to the Zimbabwean government, saying only the National Treasury could do so.
MPs sought clarity from Marcus on the mooted loan to Zimbabwe after that country's Finance Minister Tendai Biti told the media on Monday that South Africa had approved a R900-million loan to his government ahead of presidential and parliamentary elections later this year.
But Marcus said that the South African Reserve Bank has so far not been asked to write a cheque in the name of the Zimbabwean government.
"This is a government to government discussion ... should there be an agreement, the conditionalities (sic) whatever the terms and conditions are, that would be sorted out at government level and whether they delegate that to the treasury," said Marcus.
"Once that is done, and that is (an) if, we would simply be ... if we are asked, to be the executing office," she said.
Finance portfolio committee chairman Thaba Mufamadi slammed Biti for going public with the proposed loan before it could be finalised by the two governments.
"While issues are still being discussed between the two governments, somebody jumps the gun elsewhere. Tendai Biti says we'll bear the brunt of not adhering to their request because people will vote through their feet and come across (to South Africa)," said Mufamadi.
He said the finance committee would request Finance Minister Pravin Gordhan to give a full briefing to the committee about the matter.
Opposition MPs have strongly criticised government for not going public with the conditions that would be attached to Zimbabwean loan.
National Treasury spokesman Phumza Macanda confirmed that government was discussing the loan with its counterparts in Harare but has declined to shed any more light.
Government faced similar public pressure to reveal conditions attached to a R2.4-billion loan request by the government of Swaziland, led by Africa's last remaining absolute monarch King Mswati III.
Marcus yesterday told the National Assembly's standing committee on finance that the Reserve Bank could not provide details around the granting of the multi-million loan to the Zimbabwean government, saying only the National Treasury could do so.
MPs sought clarity from Marcus on the mooted loan to Zimbabwe after that country's Finance Minister Tendai Biti told the media on Monday that South Africa had approved a R900-million loan to his government ahead of presidential and parliamentary elections later this year.
But Marcus said that the South African Reserve Bank has so far not been asked to write a cheque in the name of the Zimbabwean government.
"This is a government to government discussion ... should there be an agreement, the conditionalities (sic) whatever the terms and conditions are, that would be sorted out at government level and whether they delegate that to the treasury," said Marcus.
"Once that is done, and that is (an) if, we would simply be ... if we are asked, to be the executing office," she said.
Finance portfolio committee chairman Thaba Mufamadi slammed Biti for going public with the proposed loan before it could be finalised by the two governments.
"While issues are still being discussed between the two governments, somebody jumps the gun elsewhere. Tendai Biti says we'll bear the brunt of not adhering to their request because people will vote through their feet and come across (to South Africa)," said Mufamadi.
He said the finance committee would request Finance Minister Pravin Gordhan to give a full briefing to the committee about the matter.
Opposition MPs have strongly criticised government for not going public with the conditions that would be attached to Zimbabwean loan.
National Treasury spokesman Phumza Macanda confirmed that government was discussing the loan with its counterparts in Harare but has declined to shed any more light.
Government faced similar public pressure to reveal conditions attached to a R2.4-billion loan request by the government of Swaziland, led by Africa's last remaining absolute monarch King Mswati III.
Source - sowetanlive
