Zimbabwe bank gets US $25m from US


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Zimbabwe bank gets US $25m from US

A Zimbabwean bank, African Banking Corporation (ABC) , said Thursday it had secured a US$ 25 million loan from an American bank to finance expansion. In a statement, the bank said the loan was for a two-year period, and could be converted into equity at the end. The bank operates in several neighbouring countries, and is planning to add retail banking to its current merchant banking business. “The directors are pleased to advise shareholders that Citi Venture Capital In ternational, a subsidiary of Citigroup, has approved an investment of US$ 25 million by way of a two-year convertible,” ABC said. It said if the American bank converted the loan into equity, it will control 20 per cent of ABC. Zimbabwean banks have found it increasingly difficult to attract international loans after the country was slapped with sanctions by most western lenders over its controversial land reforms. As a result, the economy has melted down, unable to finance key imports for industry. Panapress.

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