Where did this money come from? How is it that the government can't afford to hold a run-off election, or import fuel, but can pay back this loan? This is highly suspicious!

MATTER OF FACT: THE HERALD STORY OF 13 MAY, 2008 TITLED “ZIMBABWE DEFIES ODDS, PAYS US$700 M TO AfDB DEBT” REFERS

1. As Monetary Authorities, our professional integrity and ethics have impelled that we comment on the recent article of The Herald which suggested that Zimbabwe paid US$700 million to the African Development Bank (AfDB).

2. Whilst the article made nostalgic good reading, as the country’s Central Bank and custodian of Government’s foreign exchange receipts and payments, we wish to categorically state that to our knowledge, there has not been any such payment.

3. Indeed, back in 2004/2005 Zimbabwe made a surprise payment to the International Monetary Fund (IMF), which experience risks making the public believe the recent unfounded newspaper article alleging Zimbabwe’s payments to the AfDB this time around.

4. If the country had such resources (US$700 million), the Reserve Bank would have prioritized the importation of grain (maize and wheat); the importation of fuel, electricity, medical drugs, industrial chemicals, fertilizers, seeds, water treatment chemicals, agricultural equipment, and other infrastructural development essentials, and of course leaving some for debt service.

5. Although as a Central Bank we are closely working with the Ministry of Finance with several rods in the fire to raise foreign exchange resources to support the economy, such efforts have not as yet resulted in multilateral or bilateral creditors and/or donors disbursing funds or taking over our debts.

6. To this end, therefore, we are making efforts to trace and verify the source and authenticity of the Herald story, in the interest of setting the record straight.

7. Until facts are established on where this article came from, we would like to advise the Nation, and our cooperating regional and international partners to treat this story with caution.

Thank you.

________________________ DR. G. GONO GOVERNOR

It's a bit embarassing but the Governor of the central bank has publicly had to admit that Zimbabwe doesn't actually have a pot to Pi$$ in. I can imagine the phone calls he got when people thought he had spent $700 million when they could have had it in their numbered swiss bank acounts, too funny!

get the facts right!!!! 650 thousand dollars is not 7 million, try some decent mathematics and stop distorting the truth. look at the adb website.

Geez thats terrible and irresponsible reporting. Where do they find these people. With people like this around, no wonder the country is in the sh!t!

The afdc website states "In a bid to actively reconnect with international donors, the Zimbabwean government last month paid part of its arrears to the African Development Bank (AfDB) Group. On April 14, 2008, the country paid US$ 500,000 to the African Development Bank and US$150,000 to the African Development Fund. Zimbabwe has, in all, paid US$ 650,000 to the Bank Group despite numerous economic challenges currently facing the country, both globally and locally. According to Mr. Abdirrahmene Beileh, AfDB acting Director in charge of Southern African countries, "Zimbabwe is still owing the Bank large amounts of money in arrears".