Zim wants R3.25bn from SA

Zimbabwe wants R3.25-billion in overdraft and other credit facilities from South Africa, its finance minister, Tendai Biti, said yesterday.

The country is battling to reverse the ravages of a decade-long political and economic crisis.

A power-sharing government set up last year by rivals President Robert Mugabe and Prime Minister Morgan Tsvangirai has stabilised an economy savaged by hyperinflation, which peaked at 500billion percent in December 2008.

The government said it needs at least $10-billion for reconstruction.

Biti told business executives in Harare that the government wanted to negotiate with South Africa for financial assistance. South Africa recently agreed on terms for a $70-million credit line for Botswana.

Zimbabwe has failed to attract significant funds from Western donors.

"In South Africa there are two facilities we are negotiating: one is a line of credit of R500-million, one is a revival of an old overdraft facility of R2.75-billion," Biti said, adding that he would soon visit South Africa for discussions.

"We are also talking to private capital," he said.