Posted on 09/16/2005 6:08:07 PM PDT by blam
Mugabe spurned loan 'in fury over conditions'
By David Blair in Johannesburg
(Filed: 17/09/2005)
President Robert Mugabe rejected South Africa's offer of emergency cash to bail out Zimbabwe's collapsing economy and "humiliated" his officials when they presented him with a draft rescue package, it emerged yesterday.
Mr Mugabe was "apoplectic" when he learned of the stringent conditions attached to a loan from South Africa.
The conditions are believed to have included Mr Mugabe being required to open talks with the opposition Movement for Democratic Change, repeal a series of repressive laws and implement ambitious economic reforms.
A senior western diplomat said that Mr Mugabe's rejection of this offer had "exasperated" President Thabo Mbeki's government. But he added that South Africa would continue to refrain from public criticism of Mr Mugabe.
The loan would have covered Zimbabwe's debts of £160 million with the International Monetary Fund.
About one third of the country's economy has been wiped out in the past five years and inflation runs at 265 per cent.
When Zimbabwe opened talks with South Africa, it faced expulsion from the IMF, a measure that has not been taken against any country for five decades.
But the western diplomat said that Mr Mugabe had "furiously" cast aside the outcome of weeks of negotiations carried out by Gideon Gono, the governor of Zimbabwe's Reserve Bank, Herbert Murerwa, the finance minister, and their South African counterparts.
The president deliberately "humiliated" Mr Gono and Mr Murerwa by making them read out the conditions before adamantly rejecting them, the diplomat said.
Mr Mugabe's aides were left to try to find a way of preventing Zimbabwe's expulsion from the International Monetary Fund.
Sources in Harare said that the Reserve Bank raided the foreign currency accounts of exporters, seizing american dollars and paying for them in the worthless local currency. One mining company is reported to have lost £5 million.
These draconian measures, together with other devices, succeeded in raising £65 million. This was handed over to the IMF on Aug 31, in time for the organisation's executive board meeting last Friday.
That gathering decided to defer Zimbabwe's expulsion for another six months. The country still owes the IMF £95 million.
Ping.
Words are not sufficient. Maybe the UN will do something about this thug? /s
Don't hold your breath.
And the IMF let him get away with it.
LOL! Zimbabwe rejects a loan from the NEXT Zimbabwe.
The irony couldn't be richer.
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Yup. He's already declared that he'll take over all the remaining white businesses like he did the white farms.
Book marked to read later
Unfortunately, I think black Africa occupies the top 10 floors of the U.N. that Mr. Bolton was referring to (pure speculation so please don't ask me for references).
I am sure that the top U.S. African-American leaders are going to parade to the microphone and denounce Mugabe. /s
Take the remaining white inhabitants hostage for ransom from families overseas?
Don't give him any ideas....
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