RBZ secures $1,19 billion worth of liquidity facilities

THE Reserve Bank of Zimbabwe (RBZ) governor, John Mangudya said the bank now has $1,19 billion worth of liquidity facilities from various foreign institutions, as it seeks a solution to foreign currency shortages.

In a presentation to Parliament on Monday, Mangudya said they had put these facilities in place to improve the forex situation in the country.

Some of the facilities include three from the Afreximbank, a $600 million loan facility, $90 million diaspora bond facility and another $150 million loan facility.

The $600 million facility has been previously reported and is meant to finance existing facilities, pre-financing gold exports and payment of fees and costs.

The other facilities are a $100 million capital expenditure facility from the Trade Development Bank and a $250 million loan facility from British-based Gemcorp.

The Trade and Development Bank, formerly PTA Bank, is a trade and development financial institution in Africa, while Gemcorp Capital is an independent investment management firm focused on emerging markets.

All these facilities are meant to stabilise the foreign currency situation in the country, which continues to worsen.