Cabinet approves Bill on Air Zimbabwe debt

LIVINGSTONE MARUFU

Cabinet has approved the principles of the Air Zimbabwe Debt Assumption Bill which will see the government taking over the airline’s debt and give it new wings, Business Times can report.

Air Zimbabwe, which was placed under the administration of Reggie Saruchera of Grant Thornton in October 2018, has foreign debts exceeding US$30m. Domestic creditors are owed more than ZWL$349m.

Subsequent to the assumption of the debt, a new board and management will be appointed to run the airline, a move which will allow it to exit receivership.

“Cabinet adopted the principles of the Air Zimbabwe Debt Assumption Bill, which were presented by the Minister of Finance and Economic Development, Mthuli Ncube,” Information, Publicity and Broadcasting Services Minister, Monica Mutsvangwa said at a post- Cabinet  briefing on Tuesday.

Mutsvangwa added: “Cabinet advises that the principles underpin the drafting of the Debt Assumption Bill for Air Zimbabwe Holdings (Private) Limited and Air Zimbabwe (Private) Limited.”

The Bill, Mutsvangwa said, would provide a framework for debt assumption processes and procedures, validation and reconciliation of the liabilities and debt assumption modalities.

It will also provide the terms and conditions of the debt settlement plan and recovery plan for the debt paid by the government on behalf of the airline.

The Bill is expected to ensure the revival of the airline and its associated companies from perennial loss-making entities into enablers of growth in tourism, trade, commerce and the economy in general.

Government has been supporting the airline to keep it afloat. The administration recently acquired two long haul aircraft from Malaysia.

However, international travel has been severely curtailed by lockdown measures imposed by many countries to curb the spread of Covid-19 pandemic.

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