MIRA INFORM REPORT

Report Date :

08.12.2014

IDENTIFICATION DETAILS

Name :	MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT
Registered Office :	New Complex Building, Government Composite Offices, Cnr 3rd Street/ Samora Machel Avenue, Harare
Country :	Zimbabwe
Financials (as on) :	30.06.2014
Date of Incorporation :	1970
Legal Form :	State Corporation
Line of Business :	Subject operates formulation, coordination and stewardship of public resources to achieve sustainable socio-economic growth and development.
No of Employees :	2000

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Zimbabwe	C1	C1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

ZIMBABWE - ECONOMIC OVERVIEW

Zimbabwe's economy is growing despite continuing political uncertainty. Following a decade of contraction from 1998 to 2008, Zimbabwe's economy recorded real growth of roughly 10% per year in 2010-11, before slowing in 2012-13 due poor harvests and low diamond revenues. The government of Zimbabwe faces a number of difficult economic problems, including infrastructure and regulatory deficiencies, ongoing indigenization pressure, policy uncertainty, a large external debt burden, and insufficient formal employment. Until early 2009, the Reserve Bank of Zimbabwe routinely printed money to fund the budget deficit, causing hyperinflation. Dollarization in early 2009 - which allowed currencies such as the Botswana pula, the South Africa rand, and the US dollar to be used locally - ended hyperinflation and reduced inflation below 10% per year, but exposed structural weaknesses that continue to inhibit broad-based growth.

Source : CIA

SUBJECT'S NAME
Registered Name:	MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT
Requested Name:	MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT
Other Names:	None
ADDRESS AND TELECOMMUNICATION
Physical Address:	New Complex Building, Government Composite Offices, Cnr 3rd Street/ Samora Machel Avenue,
	Harare
Country:	Zimbabwe
Phone:	263-4-794572/794573/4/5/6/7
Fax:	263-4-796563
Email:	finance@zimtreasury.gov.zw
Website:	www.zimtreasury.gov.zw
LEGAL
Legal Form:		State Corporation
Date Incorporated:		1970
Reg. Number:		Zimbabwe
Budget:		USD.4,100,000,000
Subscribed Capital is Subscribed in the following form:
		Position	Shares
Hon. P. A. Chinamasa		Minister
W.L. Manungo		PS
A.N. Bvumbe		Director
P. Kunaka		Director
Z.R. Churu		Director
V. Zifudzi		Director
M. Jowa		Director
P.P. Makoni		Director
Government of Zimbabwe		Parent	100%
RELATED COMPANIES
Government of Zimbabwe		Parent company.
None		Subsidiary company.
None		Affiliated company.
None		Shareholder of subject firm.
None		Branches of the firm
OPERATIONS
Registered to operate formulation, coordination and stewardship of public resources to achieve sustainable socio-economic growth and development.
Imports:		Various worldwide
Exports:		None
Trademarks:		None
Terms of sale:		On tenders or Governmental Publication
Main Customers:		General Public
Employees:		2000 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Zimbabwe
Location:		Owned premises, 100,000 square feet,
AUDITORS AND INSURANCE
Auditors:		Information not available.
Insurance Brokers:		Information not available.
FINANCE
Currency Reported:		US Dollars (USD.)
Approx. Ex. Rate:		1 US Dollar = 1 US Dollars
Fiscal Year End:		December 31, 2013
Inflation:		According to information given by independent sources, the inflation at December 31st, 2013 was of 13%.
Financial Information below Submitted
BANK
Bank Name:		Reserve Bank of Zimbabwe
Branch:		Zimbabwe
Comments:		None
TRADE REFERENCES
Experiences:		Good
NOTARIAL BONDS
		None
COMMENTS / ADDITIONAL INFORMATION
This information was obtained from outside sources other than the subject company itself and confirmed the above subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.85
UK Pound	1	Rs.96.73
Euro	1	Rs.76.53

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	SMN

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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