HARARE 22 Jan (ANA) - Zimbabwe supreme court has ruled that all local debts incurred before 22 February 2019 must be settled in the local currency.

 

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 that was described as a landmark one by the 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 supreme court ruling has been described on Twitter as unfriendly to businesses.(ANA)

FA/ANA/22 January 2020-----