The South African Reserve Bank (SARB) has granted an overdraft facility to the Reserve Bank of Zimbabwe of up to R75-million which matures on December 312003, says South African Finance Minister Trevor Manuel.
Manuel said the facility dated “as far back as June 1987”.
Manuel was responding to a question from Democratic Alliance deputy finance spokesperson Pierre Rabie who asked what steps were being taken to prevent the debt agreements between the SARB and the Zimbabwean government from being broken.
“The [SA] Reserve Bank conducts all its business in accordance with best market practices which provides for approved collateral against overdraft facilities,” said Manuel.
“The Reserve Bank of Zimbabwe has lodged securities to the value of R82,5-million against their facility. The outstanding balance of this facility as at June 18 2003 was R67,7-million.”
Interest at a rate based on the average repurchase rate of the South African Reserve Bank for the immediate preceding month is payable on the amount utilised.
“Over the years, the terms and conditions referred to have been met,” said Manuel. – I-Net Bridge