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Mr Patson Mbiriri

Tinashe Makichi: Business Reporter

Government has mobilised $7,2 million which will go towards part repayment of debt arrears owed to China Export and Credit Insurance Corporation (Sinosure) following reports the insurance company has been reluctant to guarantee loans from Chinese banks to Zimbabwean companies.It is reported that Sinosure has been reluctant to guarantee loans from Chinese banks to Zimbabwean companies because of Government’s failure to repay arrears owed to the Asian country.

Energy and Power Development Permanent Secretary Partson Mbiriri on Monday confirmed that Government has managed to mobilise funding to settle Sinosure debts.

“About $7,2 million has been mobilised , and out of that amount, $1 million has already been authorised for release and it is Government’s intention to settle the arrears.

“The balance of $6,2 million is currently awaiting Reserve Bank of Zimbabwe’s authorisation before it can be released,” said Mr Mbiriri.

Sinosure is a state funded policy oriented insurance company with independent status of a legal person, established for promoting China’s foreign trade and economic co-operation.

Sinosure products include Medium and Long Term Export Credit Insurance, Overseas Investment Insurance, Short-Term Export Credit Insurance, Inbound Investment Insurance, Domestic Trade Credit Insurance, Bonds and Guarantees concerning foreign trade, investment and co-operation and other products approved by the Government.

Government has, however, made efforts to repay the arrears as it seeks to unlock funding for Hwange Thermal Power Station and the China Sunlight Energy project in Gwanda.