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Zim fails to repay $1.8bn IMF loan

Harare - Zimbabwe failed to repay $1.8bn to the International Monetary Fund, the World Bank and African Development Bank by its own June 30 deadline.

John Mangudya, Zimbabwe’s central bank governor, said on Thursday: "Right now, we’ve not paid anything.

“That is why we have this re-engagement process with international financial institutions. This is all part of re-engagement and confidence building measures.”

Finance Minister Patrick Chinamasa said earlier the country would repay at least $1.8bn by the end of June to be able to resume borrowing.

Zimbabwe owes $110m to the IMF, $1.1bn to the World Bank and $601m to the African Development Bank, said Mangudya.

The IMF will only consider requests for financing once Zimbabwe clears arrears and the IMF board approves the normalisation of relations with the country, spokesperson Gerry Rice told reporters in Washington on Thursday.

Snaking queues

The southern African nation is experiencing an unprecedented liquidity crisis that has led to civil servants to not being paid on time and some private-sector workers receiving goods instead of salaries.

READ:   Cash crunch dents revenue at SABMiller's Zim unit

The led to a national strike on July 6. The country was also hit by riots as taxi operators protested against what they said was police harassment.

Zimbabwe’s main border post with South Africa was shut for a weekend after the government banned the import of certain goods, sparking demonstrations from traders.

Most banks have limited cash withdrawals to $100 a day, leading to snaking queues at automated teller machines countrywide.

Zimbabwe’s foreign direct investment fell 23% to $421m in 2015, according to a report in the Financial Gazette newspaper that cited United Nations data.

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