Gvt adopts the Air Zimbabwe Debt Assumption Bill

Government, has adopted the principles of the Air Zimbabwe Debt Assumption Bill to ensure revival of the airline from perennial loss, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said.

Principles adopted are expected to underpin the drafting of the Debt Assumption Bill for Air Zimbabwe Holdings (Private) Limited and Air Zimbabwe (Private) Limited.

A combination of huge debts, viability problems and a weak balance sheet, saw Air Zimbabwe being placed under a reconstruction administration of Grant Thornton in October 2018 to prevent legal action and the attachment of assets.

Addressing at the post cabinet briefing this week, Minister Mutsvangwa said the Bill will allow the clearance of the airlines domestic and external debt as well as the appointment of a new board and new management to run the airline, thus permitting its from the Reconstruction Order.

“The Bill shall provide the following, framework for debt assumption processes, validation and reconciliation, debt assumption modalities, terms and conditions of the debt settlement plant and recovery plan for the debt paid by government on behalf of airline,” she said.

The Bill is in terms of the Public Debt Management Act as read with the Statutory Instrument 79 of 2019 which provides for the management of public debt in Zimbabwe.

Government expects the Bill to ensure revival of the airline and its associated companies from perennial loss making entities, into enablers of growth in tourism, trade, commerce and the economy in general.

“The Bill also fulfils the airlines Reconstruction Order requirement for restructuring of its balance sheet through assumptions of the airlines domestic and external debt and settlement of same by the sole shareholder, the Government of Zimbabwe,” said Mutsvangwa.

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