Zimbabwe’s Supreme Court has ruled that all local debts incurred before 22 February 2019 must be settled in the local currency, at a rate of one Zimbabwe dollar to one US dollar.
Chief Justice Luke Malaba said the repayments should not involve any conversions, upholding a lower court’s ruling on the reintroduction of Zimbabwean dollars in 2019.
The ruling, described as a landmark one by local media, will see many banks lose out as clients repay loans given in US dollars.
The Supreme Court appeal was brought by a lender who wanted to be paid back in US dollars.
Chief Justice Luke Malaba in his ruling said that the payments should be done in local currency and that no exchange rate should be applied.
The ruling has been described on Twitter as unfriendly to businesses.
Business will NEVER prosper in Zimbabwe, Supreme Court has ruled that if you had debt in Zimbabwe in USD( United States Dollars) on or before Mthuli Ncube introduced the RTGS Dollars you can pay that debt in RTGS Dollars at 1:1, olesikwelede kabhadale fast #IMIGODOYI
— Nodumo Nyathi (@notsonline) January 21, 2020
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