A FIVE year Z$400 million(R65 million) loan is to be floated by the Zimbabwe government to prop up the finances of the struggling national cargo airline, Affretair.
It is understood that underwriter will be Universal Merchant Bank and will pay interest of about 4%. Universal is owed Z$20 million by the airline, which operates no aircraft, and has refused to grant any more credit.
Money market traders say that there are likely to be very few potential lenders if the government does not agree to privatise the airline. Its problems stem from one source only, government ownership and management, and no-one will touch it unless the government gets out, the manager of a Harare finance house told FTW.
By Martin Rushmere
KLM orders nine new Boeings
KLM HAS placed an order for four Boeing 747-400 Combi aircraft and five Boeing 737-800s at a cost of almost R7,5bn.
The new aircraft have been ordered in anticipation of continued growth in demand on intercontinental routes such as Southern Africa, says Alex Lens, KLM Cargo regional director for Africa and Israel.
They are scheduled for delivery in 2000, 2001, 2004 and 2005.
