THE Preferential Trade Area (PTA) Bank has extended a US$150 million credit facility to help support the revival of the country’s private sector, Finance Ministry officials have confirmed. “Notwithstanding the challenges the country is facing the PTA still remained solidly behind cash-strapped Zimbabwe,” the Ministry said in a statement. Zimbabwe’s economy is recovering from a decade-long recession but key productive sectors continue to be held back by the lack of capital.

 The country remains cut of from multi-lateral lenders such as the International Monetary Fund and the World Bank after falling behind on repayments of previous facilities. Zimbabwe owes the IMF and the World Bank as well as other lenders an estimated US$7 billion. The institutions were also concerned by what they described as the previous Zanu PF government’s failure to stick to policy prescriptions. Meanwhile, the formation of the coalition government and the resultant economic stabilisation had led to hopes of increased support from the international community but officials admit that this has largely failed to materialise. Still, the country continues to receive some support from the African Development Bank and the PTA Bank which is based in Harare. Finance Ministry officials said the PTA Bank facility would go a long way in supporting the country’s economic recovery.

By Staff reporter and agencies