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Minister of Finance Mthuli Ncube has announced firm measures to access US$ 80 million industry fund which was drawn from the US$958 million Special Drawing Rights (SDRs) received from the International Monetary Fund (IMF).
The US$958 million equivalent received by Zimbabwe is part of the SDRs allocation of $650 billion that was released globally to all IMF member countries.
In a statement the Ncube emphasised on steps to follow in order to access the financing allocations.
“The total SDRs allocated to the productive sectors of the economy amounts to US$80 million 8,4% of the allocated SDRs.
“To access the loan, applicants shall submit an application through the participating banks and the respective banks shall conduct their normal credit assessments and due diligence through the risk sharing and co-financing model.
“The application from the bank should include a letter of support for the project from the line ministry. The banks will forward the approved applications to Treasury through the respective line ministry parent depending on the Fund from which the 80% cover Government guarantee is being sought.
“The External and Domestic Debt Committee (EDDC), Treasury will appraise the applications and approve those that meet the conditions outlined in the Framework for Evaluating, Monitoring and Managing Guaranteed and on lent loans.
“In case of default, the guarantee can only be called after the bank has exhausted all possible means of recover,” said Ncube.
The Treasury allocated US$30 million to Horticulture Revolution Fund, US$22.5 million to Industry Retooling for Equipment and Replacement for Value Chain Revolution Fund.
They also allocated US$7.5 million to Tourism facilities Services Development and Upgrading Revolving Fund and US$20 million to Smallholder Farmer Irrigation Infrastructure Development Fund.
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