Zimbabwe says it is about to begin negotiations with China for a 2-billion-US dollar loan, reported dpa Friday. Zimbabwe's ambassador to China, Christopher Mutsvangwa, told the state-controlled Herald newspaper in Harare that China had assigned an official to begin negotiations with Zimbabwe's central bank chief, Gideon Gono, and Finance Minister Herbert Murerwa. "China's government is ready to negotiate with the government for a 2-billion-US-dollar loan facility to help it fight inflation and other aspects of the economy," Mutsvangwa was quoted as saying. There was no detail on terms of repayment or any guarantees for the loan. China is upping its presence in Zimbabwe and many other African countries, though not without controversy. In Zimbabwe government critics complain the authorities are mortgaging Zimbabwe's vast mineral deposits in the hope of a quick and desperately-needed - financial fix. In the latest of a string of high-profile negotiations in Zimbabwe, the Metallurgical Corporation of China last month put in a 3-billion-dollar bid for a majority stake in Zimbabwe's failing state iron and steel company, ZISCO, Mutsvanga told state media. In recent years, Zimbabwe has not been able to receive loans from donors like the International Monetary Fund (IMF) due to unpaid debt arrears and its refusal to follow prescriptions to right the countrys faltering economy.
