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The Zimbabwean government is at it again. From 2000 the government could not keep its spending below its tax revenues, which resulted in the government forcing the central bank to print the Zim dollars that it spent.
Predictably, this led to hyperinflation and complete destruction of the Zim dollar.
But now, the Zimbabwean government no longer has its trusty money printing press to finance its budget deficit, so it is turning to the South African government, which still has its printing press, to lend it some money.
The Zimbabwean government is looking to raise $150 million (R1.3 billion) from South Africa and Angola. ”I have secured an important appointment with South Africa’s minister of finance two weeks from now,” Zim Fin Min Tendai Biti told a news conference. “In this meeting we are going to make a request for budgetary support to the tune of $100m.”
Just recently the Reserve Bank announced it will print the R2.5 billion it lent to the Swaziland government.
Let’s see whether the SA government goes banana and lets the SARB print up another batch of bailout money for the Zimbabwean government.