Parastatal loans staggering

While most of the parastatals, which have been given a freehand to operate on a commercial basis, are reported to be doing well, the amounts of long term loans they owe to the government are staggering.

At June 30, 1992, Air Zimbabwe topped the list with $494.7 million up from $312.9 million the previous year. The National Railways of Zimbabwe tagged close behind with $359.6 million up from $331.5 million and the Agricultural Finance Corporation owed $347.6 million against $303.6 million.

The only parastatal which reduced its long term loans was the Regional Water Authority which saw its loans drop from $17.5 million last year to $17.1 million this year.

Long term loans to parastatals that the government is planning to privatise – the Minerals Marketing Corporation of Zimbabwe, the Zimbabwe Mining Development Corporation, and the Zimbabwe Tourist Development Corporation remained stagnant.

Loans to parastatals operating on a commercial basis like the Zimbabwe Broadcasting Corporation and the Zimbabwe Electricity Supply Authority also continued to increase though marginally with those for the ZBC going up from $37.1 million to $41.1 million and ZESA’s from $33.8 million to $57.8 million.

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