Local Bank proposes US$35bn loan to Zimbabwe Government

Time Bank of Zimbabwe has proposed a US$35 billion syndicated loan to the government to address compensation obligations for various groups, including previous farm owners and foreign lenders, as part of a broader strategy to improve the country's business environment.

The loan aims to resolve Zimbabwe's debt crisis and pay compensations, including US$20.4 billion to foreign lenders, US$7 billion to indigenous Zimbabweans for land improvements before 1980, and US$3.5 billion to white former commercial farmers for land improvements after 1980.

Time Bank's proposal includes compensation for other groups such as ex-farm workers, depositors, pensioners, and insurance policyholders affected by past economic challenges.

The initiative is part of the bank's strategy following its reopening in 2022 after an 18-year closure, with plans to resume full banking services by the end of 2024.

Managing Director Chris Takura Tande emphasized that the loan is a homegrown solution, intended to be phased and scalable, and aimed at improving Zimbabwe's economic environment.

The bank plans to begin with a pilot scheme to demonstrate the viability of its proposal, with subsequent phases raising additional funds.

Time Bank is awaiting government approval for the loan, which is designed to avoid macroeconomic instability and align with international standards.