Mutsvangwa urges Zimbabwe to repay Chinese loans

Foreign Affairs Deputy Minister Chris Mutsvangwa yesterday castigated Government for failing to repay its international loans, saying such behaviour impacted negatively on the country's relations with the comity of nations.

He said government believed that loans from countries like China should not be serviced because they are from "our friends".

Deputy Minister Mutsvangwa was addressing students taking Joint Command and Staff Course No. 27 at the Zimbabwe Staff College in Harare yesterday.

"We have moves here to say let us ask China to get forgiveness. Getting forgiveness means you are committing credit suicide. You are denying yourself capital access. We somehow believe that loans from China should not be serviced when we do not perform," he said.

Mutsvangwa said a case in point was when the Central Intelligence Organisation borrowed $70 million from China to start a tractor company in partnership with locals.

"The directors of that company squandered all that money. Today the loan is with the Minister of Finance. It is being paid by taxpayers' money. We have no good credit rating with China."