Harare, May 17 (Xinhua) -- Zimbabwe's finance minister Patrick Chinamasa said Thursday a loan facility extended by the United Kingdom to Zimbabwe's private sector is a significant step towards normalization of relations between Zimbabwe and its former colonial power.
The United Kingdom and Standard Chartered Bank announced on Wednesday the 100 million U.S. dollars loan facility which would be lend to Zimbabwean companies in the private sector to enable them to retool and expand operations.
Chinamasa told journalists that the loan facility is part of the fruits of President Emmerson Mnangagwa's re-engagement policy, state-run news agency New Ziana reported.
"I see this loan facility as a significant step in the opening up and normalization of our political relations between Zimbabwe and the United Kingdom," he said.
He said the Zimbabwe government is grateful to the UK for availing the first significant line of credit in over two decades.
Relations between Zimbabwe and its former colonial power have been frosty since 2000 when Harare embarked on its land reform program.
Following the advent of the new administration led by Mnangagwa, many Western countries that had been hostile to Zimbabwe are warming up and expressing keenness to normalize ties with the southern African country.
