Zimbabwe assumes national airline debt

Air Zimbabwe
Air Zimbabwe

Zimbabwe’s Cabinet has resolved to assume the debt of national airline Air Zimbabwe and to extend its reconstruction period as the government seeks to prop up the company, according to the country’s information ministry.

The media report that the airline had debts exceeding 300 million U.S. dollars that were weighing down the restructuring exercise or potential bids.

Addressing a post-cabinet media briefing, Information Minister Monica Mutsvangwa said the reconstruction would provide for the payment to creditors, as well as, return the airline to profitability.

“Owing to the strategic nature of the national airline, Cabinet resolved to assume the debt as well as the extension of the Air Zimbabwe Reconstruction period to June 30, 2021,” Mutsvangwa said.

She said the airline would resume flights to Victoria Falls and Bulawayo on Dec. 21 after resuming regional flights in October.

It had suspended all flights in March due to the Coronavirus pandemic.

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