Zimbabwe reneges on pledge to limit RBZ overdraft

The Zimbabwe government, caught between the need to reduce the cost of its domestic borrowings and its insatiable appetite for funds to fund its recurrent expenditure, plans to waive the 20 percent limit on its overdraft facility at the central bank as part of efforts to find an alternative to its traditional money market borrowings.

In a development widely seen as an about-turn from a pledge made by Finance Minister Simba Makoni in 2000, Zimbabwe's Treasury has told heads of financial institu