Finance ministry says SA rejected Zim's request for $1 billion loan

Finance ministry says SA rejected Zim's request for $1 billion loan

- A spokesperson for the finance ministry said that Zimbabwe had asked for the loan of roughly R16.6 billion last month

- While the loan was rejected, finance minister Tito Mboweni is reportedly considering extending short-term credit to Zimbabwe

-This comes after weeks of economic crisis in Zimbabwe, with some concerned that the situation could impact South Africa

The finance ministry has said that South Africa rejected Zimbabwe's request last month for a loan of over $1 billion (roughly R16.6 billion).

A spokesperson for the ministry said that South Africa could not afford to loan such a large amount. The Zimbabwean government has not yet released a statement regarding the loan request.

Zimbabwe reportedly asked for the loan after months of economic woes, which culminated in the dramatic fuel price hike a few weeks ago. The fuel increase sparked protests across Zimbabwe as well as a brutal government crackdown.

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At least three people have died in the clashes and several human rights organisation claim that the actual death toll could be as high as twelve. 

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This comes after reports that finance minister Tito Mboweni is considering extending short-term credit to Zimbabwe in order to help the country pay its debts to the IMF and World Bank, among others.

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While the crisis in Zimbabwe has not yet affected South Africa economically, many are concerned that it is only a matter of time before South Africa feels the impact. There are concerns that there will be an increase in Zimbabwean migrants coming to South Africa, which would put strain on the economy.

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Source: Briefly.co.za

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