Libyan Bank Takes Zimbabwe to Court Over US$100 Million Loan Dispute

 

 

The Libyan Foreign Bank has launched legal action against the Government of Zimbabwe, demanding repayment of debts exceeding US$100 million linked to a long-standing credit agreement.

Court documents show that the lawsuit, filed in a British court in November last year, names Zimbabwe’s Finance Minister and the country’s national oil company as respondents. The case stems from loans extended under a credit facility concluded in 2001.

The Libyan Foreign Bank argues that Zimbabwe has failed to meet its repayment obligations under the agreement. According to the bank, the national oil company made only four payments totalling US$5.5 million between 2013 and 2023, leaving a substantial balance unpaid.

Including accumulated interest, the outstanding amount is now said to exceed US$100 million.

The bank further claims that the loan agreement was approved by Zimbabwe’s then Finance Minister and was backed by a government guarantee issued through the Ministry of Finance.

It also alleges that Zimbabwean authorities have repeatedly acknowledged the debt in official correspondence dating back to 2005, reinforcing its claim that the obligation remains valid and enforceable.

The lawsuit comes as Zimbabwe continues to face severe financial isolation, having been largely excluded from international capital markets due to unresolved external debts estimated at a minimum of US$21 billion. 

These include long-standing arrears owed to the World Bank and other multilateral lenders, accumulated over more than two decades.