Central Bank owes fuel suppliers $513 mln
Fuel suppliers are owned US513,5 million in blocked funds by the Central Bank according to figures contained in the 2021 Finance Act show.
The figures are for the period to December 2020 and will only be assumed by the State and paid out after being validated and reconciled by the Debt Management Office housed in the Ministry of Finance and Economic Development.
According to the 2021 Finance Act, blocked funds are a liability of the Republic of Zimbabwe for funds owed to foreign counterparties, that provided loans or advanced goods or services to a person resident in Zimbabwe and was entitled to such payment for goods and services or dividend or return on investment in foreign currency (which foreign
currency, however, could not be repatriated from Zimbabwe.
“Outstanding blocked funds may be liquidated through the issuance of Governmentbacked zero-coupon or non-interest bearing foreign exchange savings bonds or such other debt instruments denominated in foreign currency,” reads part of the 2021 Finance Act.
Trafigura is owed US$193,7 million in blocked funds for agreements signed in 2017 initially totaling US$390 million.
Another significant amount (US$62,5 million) also forming part of the blocked funds on the central bank’s balance sheet is owed to South Africa’s Engen.
Total Zimbabwe is owed US$36,2 million for products sourced from South Africa. The initial debt amounted to US$45,9 million.
Glencore/Zuva is owed US$30,9 million with the UK being the debt source. The bill has been reduced from the initial US$51,2 million.
Other sources of debts still owed to fuel dealers are Zambia, Kuwait, and the USA.
Maize suppliers are owed as much as US$145,5 million for grain sourced from Mauritius, South Africa, and the UK.
Some of the maize-related debts are from as far back as 2004 while some are from 2008, 2015, 2016, and 2018.
Airlines are owed US$177,6 million with the bulk of the funds amounting to US$79,1 million owed to International Air Transport Association (IATA).
Another significant amount of US$51,2 million is owed to Emirates.-eBusiness Weekly
