CDB provides $20 million loan to Infrastructural Development Bank of Zimbabwe for working capital (Linked to Record ID#35873, #62410)

Project narrative

On 21 November, 2011, the Zimbabwe Infrastructure Development Bank (IDBZ) signed a $30 million loan facility agreement with China Development Bank to support small and medium-sized enterprises in Zimbabwe (captured in Record ID#62410). Per the terms of the agreement, $10 million (Tranche A) is earmarked for capital expenditures with a maturity of five years, which is captured in linked Record ID#35873. The remaining $20 million as captured in this project (Tranche B) is earmarked just for working capital and will mature in one year. Tranche A and Tranche B both carry a 10% interest rate. The Chinese Government was represented at the signing ceremony by the Ambassador to Zimbabwe, Xin Shunkang, IDBZ was represented by chief executive Charles Chikaura, and the Zimbabwean government was represented by Secretary for Finance, Willard Manungo, and Accountant General for the Ministry of Finance, Judith Madzorera. However, due to sanctions against the IDBZ it was not able to gain access to the funds. According to the IDBZ's 2012 annual report, "following the removal of the Bank from the OFAC sanctions list draw down on the facility is now expected in the current year 2013." It is unclear whether this drawdown occurred.