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NetOne managing director, Mr Reward Kangai, said the company had defaulted on its loans since 2002.
He said some of the debt was inherited from the unbundling of the then Posts and Telecommunications Company (PTC), which NetOne was part of, and the other was bank loans advanced to the company at inception.
“The foreign loans were with KFW, ING Bank and Standard Chartered UK which were used to set up NetOne,” he said.
“Those loans amount to $30 million and since 2002 we have been unable to pay interests plus principal.”
Mr Kangai said NetOne was now in talks with the foreign lenders to find ways to retire the debt.
“We are negotiating with the lenders with a view of writing off the interests and the penalties and then coming up with a payment plan,” he said.
NetOne has an estimated 1,6 million subscribers and is the third largest mobile operator behind Econet Wireless and Telecel.
NetOne, formed in 1996, is the country’s first mobile operator and has 65 percent network coverage.
The company is also presently in the hunt for a strategic partner to help turn around its fortunes.
It is also in the mid of expanding its 3G services using a $45 million loan secured from the China Export and Import bank. — New Ziana.
Online Reporter