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Vol 55 No 18

Published 12th September 2014


Zimbabwe

Rescue for bigwig debts

The central bank has set up a company to buy up bad loans. Many of the worst of them were to to ZANU-PF officials and friends

The Reserve Bank of Zimbabwe has bought non-performing loans (NPLs) from two collapsed banking institutions and housed them in the new Zimbabwe Asset Management Corporation (Zamco). Although the RBZ, the central bank, set up Zamco to restore financial confidence and refused to identify the institutions concerned, Africa Confidential has uncovered their identities. Many of the worst-performing loans which brought these banks to the brink were to high officials in the ruling Zimbabwe African National Union-Patriotic Front (ZANU-PF) and their friends and relations. Some also went to a third bank to which the former RBZ Governor, Gideon Gono, was heavily exposed.

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