FRIDAY, 2.30PM:
A SIX-member International Monetary Fund delegation arrives in Zimbabwe on Tuesday for its second visit since November, to launch a US$183-million stand-by credit arrangement to prop up the country’s fast-deteriorating balance of payments position.
It is expected that the funds will be disbursed in two tranches, with a first payment available immediately after Tuesday’s talks with the Mugabe government. The next round of payments is likely to follow in March if the government meets its targets.
The deal marks the return of the IMF to Zimbabwe, which dumped the country in 1995 as “punishment” for spending profligacy and failure to make budget targets. The IMF has only returned because Minister of Finance Herbert Murerwa went cap in hand to Washington in December, agreeing to abide by the world fund’s terms.
BUSINESS BRIEFS
CRIME BOOSTS PROPERTY PRICES THE crime rate in Gauteng led to house prices in the Western Cape and KwaZulu-Natal rising by almost 30% during the six months to the end of November 1997, according to a report by real estate group Nationlink SA on Friday. Foreign interest also had an effect and the average price of a house in the Western Cape was R301 000, and in KwaZulu Natal R160 000. The property rental market has also been given a significant boost, the report said. In contrast house prices in Gauteng have remained static for more than a year, fetching an average price of R278 000.
R2bn ESKOM EUROBOND ESKOM launched a R2-billion, 21-year zero coupon eurorand bond on Thursday. The electricity parastatal’s BBB-rated issue was lead managed by JP Morgan and Toronto Dominion Securities. It comes in the wake of a number of AAA-rated eurorand issues earlier this week.
SAPPI SHARES SLIDE AGAIN SHARES in pulp and paper group Sappi slid for the second day running to close at R21.50, 25c down on the opening price. Sappi shares fell R1.10 on Wednesday amid fears that the weakness of Far Eastern markets would slow any recovery in pulp and paper prices.
OUDEKRAAL DENIES BANKRUPTCY STEVE JONES, the developer of the controversial White House development at Oudekraal on the slopes of Table Mountain, has dismissed claims made in the Cape High Court on Wednesday that the controversial multi-million rand hotel development is on the rocks. Jones said Standard Merchant Bank approved a budget of R33-million in 1996, before the start of construction.