HomeLocal NewsUS$54 866 loan chokes tobacco farmer

US$54 866 loan chokes tobacco farmer

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BY DESMOND CHINGARANDE
TOBACCO farmer, Tawanda Jamhare has been sued by the Zimbabwe Leaf Tobacco (ZLT) company after he failed to repay a US$54 866 loan he was given to grow 25 000kg of tobacco.

According to court papers, Jamhare was initially issued with summons on October 12, 2015 after he reneged on the payment terms.

However, the parties subsequently entered into an agreement on July 17, 2017 in which Jamhare would pay US$13 059 with interest at the rate of 9% per annum from July 14, 2017 to the date of full payment.

They also agreed that Jamhare would pay the legal costs at client scale.

They also agreed that US$6 529 would be paid before July 31, 2018 and all amounts due to ZLT before July 30, 2019. But he failed to do so.

In his opposing papers, Jamhare said he paid some of the money using Zimbabwe dollars to reduce his debt when the currency was $1=US$1.

However, High Court Judge Justice Gladys Mhuri ordered Jamhare to pay ZLT US$11 177 with interest at the rate of 9% per annum calculated from May 31, 2021 to the date of full payment.

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