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Martin Kadzere
Zimbabwe has dismissed concerns surrounding the US$1,9 billion loan issued to Mutapa Investment Fund, the country’s sovereign wealth fund, saying the loan was a standard practice for such funds, often capitalised through grants, State assets, or Government loans.
“There is nothing unusual or amiss about the funding provided to Mutapa through debt,” Mr George Guvamatanga, permanent secretary in the Ministry of Finance, Economic Development and Investment Promotion said this week.
“There are proper loan agreements that are in place and we actually have confidence that the debt will be repaid.
Mr Guvamatanga was responding to questions during a breakfast meeting hosted by the Zimbabwe Economic Society to review the Mid-Term Fiscal Policy Statement announced last month.
The loan has been a subject of debate within Zimbabwe, with some questioning its necessity and transparency.
However, Mr Guvamatanga assured the public that the Government maintains oversight over Mutapa’s operations and has the first right to any assets disposed of by the fund.
He said the debt was a loan to Mutapa, and the Government had priority in any disposals made by the fund, adding the proceeds from such disposals would be directed towards debt repayment.
Online Reporter