ZIMBABWE has secured a syndicated loan facility that will enable the country to clear $1.7 billion arrears with the World Bank and African Development Bank.

The loan will allow the country to settle $1.1 billion it owes in interest and penalties and some principal debt to the World Bank and $601 million to the AFDB.

Although Finance and Economic Development, Minister Patrick Chinamasa did not reveal the lenders, Bloomberg quoted him as saying that the rate on the loan was cheaper than that charged by the World Bank.

It is believed the loan could have been put together by the African Export-Import Bank although some suspicion points to Trafigura Group, a Singaporean global commodities firm.