China reschedules ZISCO debt to 2013
Source: Xinhua |
January 30, 2010, Saturday
|
Print Edition
Print Edition
CHINA has rescheduled to 2013 the debt of Zimbabwe's biggest iron and steel maker following a request by the Zimbabwean government, according to official sources.
Zimbabwean Industry and International Trade Minister Welshman Ncube yesterday said Zimbabwe Iron and Steel Co was presently not generating any income and was unable to service its US$54.7 million debt to Chinese banks.
The Chinese lenders extended the loan in 2007 to assist ZISCO refurbish one of its blast furnaces.
Ncube said the debt had a repayment schedule of US$5 million a year and that the first payment was due at the beginning of last year.
ZISCO managed to pay about US$1 million, prompting the government to request debt relief from the Chinese financiers.
"We asked the Ministry of Finance to renegotiate the payment terms on the understanding that by 2013 ZISCO will be fully operational," Ncube said.
He said the government was happy with the debt relief, indicating this would give ZISCO the breathing space to concentrate on refurbishing the blast furnace and improving operations at the company.
"Right now we are still working with the Chinese contractors to refurbish Blast Furnace Number Four," he said.
The major challenge had been that the company was using the little money generated to service the debt at the expense of perfecting the machine, he added.
Zimbabwean Industry and International Trade Minister Welshman Ncube yesterday said Zimbabwe Iron and Steel Co was presently not generating any income and was unable to service its US$54.7 million debt to Chinese banks.
The Chinese lenders extended the loan in 2007 to assist ZISCO refurbish one of its blast furnaces.
Ncube said the debt had a repayment schedule of US$5 million a year and that the first payment was due at the beginning of last year.
ZISCO managed to pay about US$1 million, prompting the government to request debt relief from the Chinese financiers.
"We asked the Ministry of Finance to renegotiate the payment terms on the understanding that by 2013 ZISCO will be fully operational," Ncube said.
He said the government was happy with the debt relief, indicating this would give ZISCO the breathing space to concentrate on refurbishing the blast furnace and improving operations at the company.
"Right now we are still working with the Chinese contractors to refurbish Blast Furnace Number Four," he said.
The major challenge had been that the company was using the little money generated to service the debt at the expense of perfecting the machine, he added.
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