SOUTH Africa could negotiate on Zimbabwe’s behalf with the International Monetary Fund and the World Bank to help Harare out of an economic crisis, President Thabo Mbeki said Thursday. Mbeki, however, ruled out the possibility of giving direct financial help to Zimbabwe to save it from fuel and electricity shortages, saying the South African constitution does not allow it to extend a loan. As an alternative to a loan, South Africa may let Zimbabwe set up a rand-denominated bond to overcome its currency problems, Mbeki said. This is the first time that Mbeki has responded to weekend newspaper reports that South Africa has pledged an R800-million loan to Zimbabwe. The reports have been denied by government ministers, who have said Zimbabwe never asked for such a loan.
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