The Zimbabwean central bank has agreed to take over Zimbabwe dollar (ZWL) 1.2billion in “foreign currency historical or legacy debt” at a rate of 1:1 between the RTGS$ and the US dollar.
The reserve bank will pay Nampak International the amount owed by the Nampak Zimbabwe in quarterly instalments over three years after the three parties reached an agreement over this. After the introduction of the Zimbabwe dollar this week, the unit is trading at an average of around 1:8 against the US dollar.
“An agreement was reached between Nampak Zimbabwe, Nampak International and the Reserve Bank of Zimbabwe,” said Keith Nicholson, company secretary for Nampak Zimbabwe on Friday.
Nampak had started to limit exposure to Zimbabwe risks by limiting further advances. Nampak Zimbabwe said in November 2018 that as a “consequence of the lack of foreign exchange” its South African major shareholder had reviewed and “subsequently limited their support at the commencement of the third quarter, thereby curtailing their escalating exposure” to the country.