Last year, an interest of
IDBZ public relations executive Ms Priscillah Mapuranga said the
"Significant progress has been made towards consummation of the line of credit earmarked for the tourism sector in the sum of
"Following successful negotiations, the IDBZ and IDC South Africa have since signed all the requisite legal documentation to consummate the line of credit.
"The bank is satisfied with the progress that has been made in that regard. Once this process is complete the bank shall be able to draw down on the facility.
"However, as is standard practice with facilities of this nature certain conditions precedent has to be fulfilled before draw down can be effected.
"In this regard the IDBZ is pleased to advise that it has fulfilled all but one conditions precedent. The outstanding condition precedent relate to the removal of the legacy debt from IDBZ balance sheet."
Ms Mapuranga said IDBZ was satisfied with the progress that had been made in that regard. Once this process is complete, the bank shall be able to draw down on the facility.
As such, there is need for fresh capital to spruce up the standards which have deteriorated over the past few weeks. As noted in the National Tourism Policy, there is need for more investments in accommodation sector and conference facilities.
Presently, tourism contributes 10 percent to the national gross domestic product. It is anticipated its contribution to the GDP will increases to 15 percent next year.
The sectors is also expected generate over
IDBZ has been facing challenges in mobilising lines of credit as it remains under the sanctions list of the
While the bank was pardoned by the
The group aims to be a
He said a well capitalised bank with a broad institutional shareholder base would enhance the bank's capacity to raise debt capital to fund relatively large and bankable projects.
Most Popular Stories
- Consumer Prices Edge Up, Surprising Economists
- Market Jolt Offers a Reality Check for Investors
- Clinton Rallies New England Women
- Do Voters Want Compromise?
- Stocks Close Out Best Week in Nearly 2 Years
- Timeline for New York Ebola Doctor
- Ebola in New York, Mali Raises Travel Jitters
- Steris to Add 100 Jobs in Birmingham
- Microsoft Earnings Drive Stocks Higher
- 'Kissing Congressman' Admits Mistake in Reelection Bid