STAFF WRITER
THE Zimbabwe National Road Administration (Zinara) will soon begin talks with the Development Bank of Southern Africa (DBSA) with a view to restructure US$186m debt as part of efforts manage it’s interest burden.
DBSA extended US$206m loan in 2011 for the refurbishment of Plumtree-Mutare highway. The loan should be paid off by 2021.Zinara,however, has paid about US$20m, leaving a balance of US$186m.
But Zinara board chairman Michael Madanha said the road administrator was grappling with the consequences of recent currency reforms.
The changes in monetary policies have resulted in the Zimbabwean dollar being rated against the US dollar, meaning it’s no longer possible for Zinana to meet the 2021 deadline.
Madanha said Zinara will seek a 10 year extension.
“This loan was signed in 2011, so 2021 we are supposed to clear, but because of the shortage in foreign currency that we are facing, we are not able to finance all loan obligations, and as such we are now negotiating,” Madanha told parliamentarians.
He added:“We are going to start negotiations with the bank with a view to extend the loan repayment period, with at least 10 more years because we are heavily affected.”
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