Govt borrowed US$200m from China using assets worth US$52 billion
Government has failed to explain an outrageous deal it entered with China in which it borrowed US$200 million from the Asian country while collateralising an asset which in gross terms is worth more than US$52 billion.
On Wednesday, Finance Minister Mthuli Ncube told Parliament that there is a US$200 million farm mechanisation equipment facility signed on 13th October, 2006, through China-Exim Bank. The loan was collateralised by 26 million ounces of platinum.
This prompted former Finance Minister Tendai Biti to do a quick breakdown of the transaction. He found it irregular that the government would back such a loan with 26 million ounces of platinum worth, according to him, 52 billion.