Afreximbank extends $250 mln line of credit to Zimbabwe

HARARE, May 7 (Xinhua) -- The African Export-Import Bank (Afreximbank) has extended a line of credit worth 250 million U.S. dollars to Zimbabwe to help revive the country's battered economy, New Ziana said on Thursday.

The continental bank joins the growing list of creditors that have extended a helping hand to Zimbabwe in recent months following similar gestures by the African Development Bank, the Botswana and South African governments, among others.

The Afreximbank funds would be used to support the gold sector, tobacco, grain importation and banks.

Addressing a press conference soon after meeting Afreximbank president Jean-Louis Ekra on Thursday, Finance Minister Tendai Biti commended the bank for providing the facility as well as its continued support to Zimbabwe.

"I am grateful to the bank for coming up with the facility and for its continued support," he said, pointing out that as part of an ongoing agreement with the bank, Afreximbank would continue to provide lines of credit to Zimbabwe.

Biti said Afreximbank had agreed to work with the government incoming up with a bond to enable Zimbabweans in the Diaspora and other investors to play an active role in the reconstruction of the country's economy.

"The bank will act as a guarantor for the bond, which will be launched at the beginning of July," he said, adding that a draft agreement to be finalized by end of June was already in place.

Following his recent visit to Washington, minister Biti said Zimbabweans had expressed interest in contributing towards the country's economic recovery.

"It is critical for Zimbabweans abroad to invest in the country and its recovery. This (the bond) is the starting point for their re-engagement with the country," he said.

The bank would also work closely with the government in various efforts to rationalize public enterprises and assets.

He said a cabinet ministerial committee had been set up to oversee the privatization and disposal of state enterprises.

Afreximbank president Jean-Louis Ekra said the bank, being an African institution created by African governments, had a duty to support African countries in times of need.

"Afreximbank will do its best to support Zimbabwe through lines of credit in an effort to recover the economy," he said.

The bank, headquartered in Abuja, Nigeria, had established relations with many local banks.