[It bothers me that every news item hitting the media regarding the S.African Loan to Zimbabwe is based on anonymous “Government sources”. There is absolutely no official announcement of any kind regarding any aspect of the loan. My personal assessment of this is that it is a Government disinformation campaign. I am highly suspicious of all of this. I’m willing to bet that it is NOT going out in installments. Jan]

Details of SA’s financial bale-out of Zimbabwe emerged yesterday, with sources saying SA will soon release an initial tranche of $470m to settle Zimbabwe’s $295m arrears with the International Monetary Fund and to deal with the humanitarian crisis.

Zimbabwean government sources said SA would give Zimbabwe the tranche with conditions attached — despite President Robert Mugabe’s hostility to the conditions.

SA is keen to avoid a repeat of the crisis in Zimbabwe and wants Mugabe to effect long-term economic and constitutional reforms. Sources said the $470m advance could grow to $1bn, depending on circumstances in Zimbabwe.

“More money will be released, depending on how Zimbabwe responds to SA’s expectations on political and economic reforms. The second and possibly third tranches would be for things like fuel, power and food,” a source said.

After raising only $59m from China for fuel, Mugabe still needs a financial rescue package and hopes to strike a deal with Iran next month.

Sources said money for the humanitarian crisis would be channelled through groups such as the South African Council of Churches (SACC) and the Zimbabwe Council of Churches.

However, SACC secretary-general Molefe Tsele said: “We will not deal with money. We deal with humanitarian aid.”

The SACC, which met President Thabo Mbeki on Tuesday to discuss its Zimbabwean mission, has sent blankets, white maize, cooking oil, sugar beans and other necessities to Zimbabwe.

Source: AllAfrica.Com
URL: http://allafrica.com/stories/200508110207.htm…/p>