August 08, 2015

"It has emerged that part of the reason for Mnangagwa’s visit to Beijing between July 5 and 10 was to seek an emergency rescue package for the country, which is facing a severe liquidity crunch."

Zimbabwe Independent During his visit Mnangagwa met several officials from the Communist Party of China (CPC), including Vice-President Li Yuanchao, in need of help. by Elias Mambo

'Mnangagwa reportedly pleaded with the Chinese to assist with funds, but just like President Robert Mugabe who visited the country in August last year, came back empty-handed.

'The loans the Chinese are concerned about include the US$150m given to the Civil Aviation Authority of Zimbabwe in 2013, US$200m loan used to procure farming equipment (2011), a US$51m extended to the Grain Marketing Board (2012) and US$70m advanced to the Central Intelligence Organisation.

'China also extended a US$36m loan to Zimbabwe after then vice-president Joice Mujuru approached the Chinese in 2013. Recently, Zimbabwe received digitalisation equipment worth US$3m as it futilely sought to beat the June 17 International Telecommunication Union’s deadline to migrate from analogue to digital broadcasting and US$218m for NetOne expansion.

'Sources who accompanied Mnangagwa said the Chinese kept questioning Zimbabwe’s capacity to repay the loans since it had already defaulted on other loans.

'Sinosure, an insurance company which guarantees all government-to-government loans involving the Chinese, was also reportedly refusing to guarantee further loans to Zimbabwe.'

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