By Oliver Kazunga
Paper and packaging group, Nampak Zimbabwe Limited says it will next month start paying in tranches a US$66,8 million it owes foreign creditors.
In the 2019 financial year, Nampak Zimbabwe Limited (NZL) entered into an agreement with the Reserve Bank of Zimbabwe and Nampak International Limited (NIL) encompassing the undertaking by the Central Bank to provide foreign currency to pay off the debt held by the local paper and packaging firm to NIL amounting to US$66,8 million.
In a statement accompanying NZL 2020 annual report, the company’s chairman Mr Kumbirai Katsande said:
“A hedge was put in place in the previous year (2019) following an arrangement made with the Reserve Bank of Zimbabwe whereby amounts due to the major shareholder’s procurement company were placed with the Reserve Bank for future payment in tranches, which are due to commence from 31 March 2021.”
During the year under review, NZL capital expenditure amounted to ZWL$97,4 million compared to ZWL$51,9 million in 2019, the bulk of which was deferred expenditure from the previous year owing to foreign currency restrictions. The Chronicle