China tells Zimbabwe to repay $1.5 billion

It has emerged that part of the reason for VP Emmerson Mnangagwa's visit to Beijing in early July was to seek an emergency rescue package for the country.

China which has told Harare it does not provide budgetary support has provided Zimbabwe with over $1billion in concessionary and preferential loans. It has also given Zimbabwe $100million in grants and interest free loans.

Mnangagwa reportedly pleaded with the Chinese to assist with funds but came back empty handed as the Chinese are said to be demanding that Zimbabwe should provide a payment plan for loans totalling $1.5billion accessed from China over the past few years.

Sources who accompanied Mnangagwa said the Chinese kept questioning Zimbabwe's capacity to repay the loans since it has already defaulted on other loans.

Sinosure, a company that guarantees Chinese loans, is said to have also refuse to guarantee further loans to Zimbabwe.