- Zimbabwe has found itself in more financial predicaments and owes a number of international and South African airlines billions of rands
- Due to the lack of foreign currencies in the Zimbabwe, individuals and companies have not been able to recuperate their monies
- The International Monetary Fund says it can no longer offer Zimbabwe financial assistance until the country restructures its debt of over R140 billion
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HARARE - Zimbabwe's financial problems continue to increase to the extent that the country now owes South African Airways and other international airlines close to R2.8 billion that cannot be repatriated.
The cash-strapped country has been faced with shortages of foreign currencies as far back as 2016 and as a result, people and firms with foreign debt exposure have not been able to repatriate funds out of Zimbabwe.
Fin24 reports that this issue has also impacted companies that seek to pay dividends to overseas shareholders, as well as those with worldwide headquarters. These companies now face the risk of not being able to recuperate their investments and revenues.
When it comes to the breakdown of debt, Zimbabwe owes Emirates the most with a total debt of R795 million. SAA is owed R109 million, this debt was brought down from R293 million while South Africa's Airlink is owed R15.2 million.
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Zimbabwe has recently acknowledged this debt in its budget planning, however, the country has not given an indication of how it would go about repaying these airlines.
Zimbabwe also owes the International Monetary Fund more than R 146 billion. The international financial institution asked Zimbabwe to restructure this debt first before seeking more financial assistance, reports Bloomberg.
As it stands, the IMF says it cannot offer Zimbabwe any further loans due to the country's unsustainable debt levels.
89 000 Zimbabweans deported, humanitarian crisis across the border
In other Zimbabwe related news, Briefly News previously reported that over 89 000 illegal immigrants from Zimbabwe have been arrested and deported after they desperately tried to enter South Africa in the hope of a better life.
Zimbabwe labour unions, civic society groups and human rights activists have been warning South Africa of the humanitarian crisis taking place across the border.
Peter Mutasa, former president of Zimbabwe Congress of Trade Unions has said that SADC needs to resolve these issues and simply arresting and deporting immigrants is not the solution.
Source: Briefly News