See also:
» 18.03.2011 - Africa defies AU chief's support for Ghaddafi
» 02.03.2011 - African Union chief: "No comment" on North Africa
» 01.02.2011 - New AU leader Obiang calls criticism un-African
» 31.01.2011 - Africa's worst dictator becomes AU leader
» 28.01.2011 - "Fake unity govt" in Equatorial Guinea
» 13.10.2010 - Equatorial Guinea opposition leader detained
» 23.09.2010 - Equatorial Guinea propaganda now reaches all homes
» 15.06.2010 - Equatoguinean dictator snubbed by UNESCO











China wholesale online through DHgate.com


Finn autentiske matoppskrifter fra hele verden på Verdensmat.no:
Gazpacho Børek Kartoffelsalat Taboulé Gulasj Albóndigas Cevapi Rougaille Japrak sarma Zwiebelbrot Klopse Giouvetsi Paella Pljeskavica Pica pau Pulpo a la gallega Flammkuchen Langosj Tapenade Chatsjapuri Pasulj Lassi Kartoffelpuffer Tortilla Raznjici Knödel Lentejas Bœuf bourguignon Korianderchutney Brenneslesuppe Proia Sæbsi kavurma Sardinske calamares


Autentiske matoppskrifter fra hele verden finner du på Verdensmat.no:
Réunion Portugal Aserbajdsjan Serbia Tyskland Seychellene Bosnia Spania Libanon Belgia India Kroatia Hellas Italia Ungarn Komorene Georgia Mauritius Østerrike Romania Frankrike


Equatorial Guinea | Zimbabwe
Politics | Economy - Development

Record Zimbabwe debts to Equatorial Guinea

President Teodoro Obiang Nguema of Equatorial Guinea has lent over US$ 200 million to Zimbabwe

© Gob. de GE/afrol News
afrol News, 7 January
- Equatorial Guinea has emerged as one of Zimbabwe's main creditors following massive unpaid oil deliveries since the surrender of coup plotter Simon Mann from Harare to Malabo in 2008.

As the Reserve Bank of Zimbabwe at the end of the year announced its need for refinancing, the extent of the bank's debts was publicly known. Out of a total unsustainable debt of US$ 1.2 billion, the Bank owed some US$ 222 million to Equatorial Guinea, which turned out to be its greatest creditor.

These large debts were accumulated since 2004, when Simon Mann was arrested at the Harare airport and a plot to organise a coup in Equatorial Guinea was revealed.

Equatorial Guinea and Zimbabwe at the moment did not have strong bilateral ties, but Equatoguinean Dictator Teodoro Obiang Nguema immediately took an initiative to deepen relations with his Zimbabwean counterpart Robert Mugabe as Mr Mann's plot was unravelling. President Mugabe at the time already was facing mounting international isolation and financial problems.

A state visit of Equatoguinean President Obiang to Zimbabwe in March 2006 brought the two leaders - both facing massive international condemnation over their human rights policies - closer together. At the occasion, the first steps of a deal providing for Mr Mann's extradition to Equatorial Guinea and oil deliveries to Zimbabwe were negotiated.

The oil deal was finally publicised in June 2006 by Zimbabwean state-controlled media. A "purely commercial" energy trading agreement had been signed with the government of Equatorial Guinea, Harare authorities announced. It was insisted that these energy resources were "to be bought and sold at market rates" on the Zimbabwean market.

The deal came after petrol was becoming scarce in Zimbabwe. Even friendly nations such as South Africa and Libya at the time mostly had halted petrol supplies to the Mugabe regime as Zimbabwe became unable to pay for these supplies.

For the Equatoguineans, it was clear that oil supplies to Zimbabwe would have to be supplied through a credit line as Harare had no hard currencies to pay with. To avoid publicity about these unfavourable conditions, it was agreed that the credit was to be handled by the non-transparent accounts of the Reserve Bank in stead of normal credits handled by the Harare Finance Ministry.

Although obvious to all observers, both Equatorial Guinea and Zimbabwe denied any link to an extradition of Mr Mann. Malabo sources however already in April 2006 announced that Mr Mann would be sent to Equatorial Guinea. And indeed, in February 2008, he was extradited to Malabo.

Meanwhile, Equatorial Guinea has continued to provide Zimbabwe with oil on credit. Within four years, this credit has accumulated to US $ 222 million, which is a large amount given the desperate poverty experienced by the majority of Equatoguinean citizens.

It remains doubtful whether the Malabo government will be able to recover its funds, if this ever was the intentions. Currently, the Reserve Bank of Zimbabwe is insolvent and is asking the Harare Finance Ministry to take over its large and unsustainable debt burden. Models are still sought to solve the crisis.

If the Bank's debts are transferred to the Treasury, a future government will try to renegotiate Zimbabwe's debt burden with the aim of achieving debt reduction or cancellation. In this situation, Equatorial Guinea can be pressured by other Zimbabwean creditors to cancel its major debt post.

Equatorial Guinea meanwhile continues to provide oil to Zimbabwe.


- Create an e-mail alert for Equatorial Guinea news
- Create an e-mail alert for Zimbabwe news
- Create an e-mail alert for Politics news
- Create an e-mail alert for Economy - Development news


 
    Printable version


On the Afrol News front page now

Rwanda
Rwanda succeeds including citizens in formal financial sector

afrol News - It is called "financial inclusion", and it is a key government policy in Rwanda. The goal is that, by 2020, 90 percent of the population is to have and actively use bank accounts. And in only four years, financial inclusion has doubled in Rwanda.

Famine warning: "South Sudan is imploding"

afrol News - The UN's humanitarian agencies now warn about a devastating famine in Sudan and especially in South Sudan, where the situation is said to be "imploding". Relief officials are appealing to donors to urgently fund life-saving activities in the two countries.
Guinea
Panic in West Africa after Ebola outbreak in Guinea

afrol News - Fear is spreading all over West Africa after the health ministry in Guinea confirmed the first Ebola outbreak in this part of Africa. According to official numbers, at least 86 are infected and 59 are dead as a result of this very contagious disease.
Ethiopia
Ethiopia tightens its already strict anti-gay laws

afrol News - It is already a crime being homosexual in Ethiopia, but parliament is now making sure the anti-gay laws will be applied in practical life. No pardoning of gays will be allowed in future, but activist fear this only is a signal of further repression being prepared.
Ethiopia
Ethiopia plans Africa's biggest dam

afrol News / Africa Renewal - Ethiopia's ambitious plan to build a US$ 4.2 billion dam in the Benishangul-Gumuz region, 40 km from its border with Sudan, is expected to provide 6,000 megawatts of electricity, enough for its population plus some excess it can sell to neighbouring countries.



front page | news | countries | archive | currencies | news alerts login | about afrol News | contact | advertise | español 

©  afrol News. Reproducing or buying afrol News' articles.

   You can contact us at mail@afrol.com