ZIMBABWE

(C) RESTRICTION

(i) Borrowing

Local Borrowing

Local companies with foreign shareholding are allowed to borrow for working capital on the local market without restriction, while capital projects can only be financed from funds injected from outside Zimbabwe or from the company's retained earnings.

External Borrowing

All companies operating in Zimbabwe are free to borrow off-shore for export related business as long as this is carried out through commercial banks who can arrange external loans of up to US$5 million per loan without having to apply for approval from government. Loans exceeding this amount require prior approval by the External Loans Coordinating Committee (ELCC).