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TOPIC: Got more than $217 on you?... Zimbabwe Don't!

Got more than $217 on you?... Zimbabwe Don't! 4 years 10 months ago #4770

  • Steve Tidball
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Zimbabwe left with just $US217 in the bank
Sydney Morning Herald

After paying public workers' salaries last week, the balance in cash-strapped Zimbabwe's government public account stood at just $US217, Finance Minister Tendai Biti says.

"Last week when we paid civil servants there was $US217
in government coffers," Biti told journalists in the capital Harare, claiming some of them had healthier bank balances than the state.

"The government finances are in paralysis state at the present moment. We are failing to meet our targets."
Zimbabwe's economy went into free-fall at the turn of the millennium, after President Robert Mugabe began seizing white-owned farms.

The move demolished investor confidence in the country, paralysed production, prompted international sanctions and scared off tourists.

After more than a decade - in which the country suffered hyper-inflation of 231 million per cent and infrastructure that crumbled as quickly as prices went up - the situation is now more stable.

But public finances remain a mess and local business battles against unstable electricity supplies, lack of liquidity and high labour costs.

Zimbabwe's government has warned it does not have enough money to fund a constitutional referendum and elections expected this year.

Biti said that left no choice but to ask the donors for cash.

"We will be approaching the international community," he said.

The country's elections agency said it requires $104 million to organise the vote.
Government's national budget for this year stands at $3.8 billion and the economy is projected to grow 5.0 per cent.

The mineral rich country is now using the US dollar and the South African rand.

Source
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Got more than $217 on you?... Zimbabwe Don't! 4 years 10 months ago #4771

  • Steve Tidball
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Surprise, surprise, they don't have any money to run 'elections'.
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Got more than $217 on you?... Zimbabwe Don't! 4 years 10 months ago #4797

  • Lord Numb
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I wonder how much Robert Mugabe has in his deeming account?
So many idiots; so few villages.
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Got more than $217 on you?... Zimbabwe Don't! 4 years 10 months ago #4802

  • Steve Tidball
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Lord Numb wrote:
I wonder how much Robert Mugabe has in his deeming account?

More than $217 I would surmise.
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Got more than $217 on you?... Zimbabwe Don't! 4 years 10 months ago #4807

  • StrawberryBlonde
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It's nice to be richer than a country though...
Member #13736 #WeOwnTheWest #PantherPride
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Got more than $217 on you?... Zimbabwe Don't! 4 years 10 months ago #4809

  • Steve Tidball
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Zimbabwe central bank now backs indigenisation laws
AFP

HARARE — Zimbabwe's central bank chief who has previously warned government against the seizure of foreign banks on Thursday appeared to make an about-turn, but cautioned the process must be orderly.

"All banks should observe the laws of the country including the indigenisation ... law," Gideon Gono said in his monetary policy statement in Harare.

"The process to indigenise the banks should, however, take cognizance of the sensitivities around the operation of the banks to restore confidence, trust and stability in the sector."

Zimbabwe in 2007 adopted a law that forces foreign owned companies to sell 51 percent of shares to locals.
But last year the central bank governor warned the country's fragile economy could grind to a halt if the government rushed its planned seizure of majority stakes in foreign-owned banks.

Britain's Standard Chartered Bank and Barclays Bank, and South Africa's Standard Bank, are just some of the major foreign banks with operations in Zimbabwe.

Top African conglomerate, Ecobank earlier this month complied with the local regulations giving up majority stake stake to locals.

The black empowerment drive, which is being spear-headed by long ruling President Robert Mugabe saw the world's number two platinum miner Implats cede 51 percent of the shares in its local unit Zimplats, to Zimbabwean investors.

The campaign has been described as illegal and a threat to Zimbabwe's ailing economy by Prime Minister Morgan Tsvangirai.

Gono said Zimbabwe's economy remains fragile with low export earnings, lack of credit lines or foreign direct investment resulting in the liquidity crunch.

The southern African country which trashed its local dollar because of hyper-inflation four years ago in favour of hard currencies is facing the problem of fake US dollar and South African rand notes in circulation.
"Under the multiple currency system, the proliferation of counterfeit notes has gathered pace in a worrisome manner," he warned.

Zimbabwe's central bank which has complained about banks charging steep bank charges and interest rates of up to 30 percent announced a lending rate ceiling of no more than 12 percent.

Source

Looks like their economny is about to go through another downturn. It will be interesting since without a national currency this time around it will be hard to curb inflation.
Last Edit: 4 years 10 months ago by Steve Tidball.
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