Zimbabwe banks reject EU financial bailout

Zimbabwean banks have since last year been rejecting access to credit facilities from European banks for on-lending to productive sectors, citing the possibility of failure to repay the loans because of uncertainty caused bond notes.

RBZ governor John Mangudya introduced US$200 million bond notes, backed facility in November 2016, to ease a biting cash and liquidity crunch.

The move, however, backfired as it resulted in a crisis in confidence and capital flight causing the emergence of a strong foreign currency black market.