| Last Updated: Tuesday, 16 August 2005, 12:52 GMT 13:52 UK |
SA fears Zimbabwe 'failed state'
Aziz Pahad said South Africa did not want Zimbabwe's government and opposition to form a government of national unity to solve its problems.
He said South Africa wanted Zimbabwe to change its economic policies, in return for a loan, which is being negotiated.
Meanwhile, Zimbabwe's government has again ruled out the idea of holding talks with the main opposition party.
Zimbabwe is going through an economic crisis, with shortages of food, fuel and foreign currency, and rampant unemployment and inflation.
It has asked South Africa for an emergency loan so it can repay its debts to the IMF and avoid expulsion.
| Zimbabwe govt broke, Murerwa admits |
8/18/2005 9:20:06 AM (GMT +2)
THE government - relentlessly seeking recourse from the domestic market to make ends meet and facing expulsion from the 184-member International Monetary Fund (IMF) - is technically broke.
After twice postponing the mid-term fiscal policy presentation, Finance Minister Herbert Murerwa all but admitted on Tuesday he cannot quench the government's insatiable appetite for funds as he rejected pleas for $31 trillion in additional funding from bankrupt line ministries.