No decision on Zimbabwe loan

South Africa’s government today said no decision had been made on a possible loan to Zimbabwe to help that country purchase electricity, food and fuel.

Government spokesman Joel Netshitenzhe declined to confirm reports that a delegation from Zimbabwe met over the weekend with Reserve Bank governor Tito Mboweni and finance minister Trevor Manuel to discuss a loan.

The spokesman would say only that recent talks between the two governments “quite possibly” covered the issuing of a loan, but that no decision had been made.

A spokeswoman for the South African Reserve Bank said Mboweni met with the Zimbabwe delegation on Friday, but declined to discuss the topic of the discussions.

Nethitenzhe said considerations guiding the possibility of a loan would be Zimbabwe’s “economic recovery” and ”political normalisation”.

Any decision to make a loan to Zimbabwe would have to go before the Cabinet and Parliament, he said.

The Zimbabwe government, which earlier claimed its economic recovery was on track, announced that inflation last month jumped from 144.2% to 164.3%.

Zimbabwe housing minister Ignatius Chombo has also ordered a temporary halt to mass demolitions and evictions in its controversial clean-up campaign that has left hundreds of thousands, mostly urban poor, homeless.