Zimbabwe’s mineral-backed loans a cause for concern
Deals may complicate future negotiations with external creditors to restore debt sustainability, says IMF
Foreign loans that use minerals as collateral may complicate Zimbabwe's future negotiations with foreign creditors to restructure its $8.8bn debt, an IMF official said on Monday.
Unable to get funding from lenders like the IMF since defaulting on its debt in 1999, Zimbabwe has in the past five years relied on the African Export and Import Bank (Afreximbank) for mineral-backed loans. But the country still faces a dollar crunch that has led to shortages of fuel and medicines.