GROUP FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – for the year ended 30 June 2014

    2014  
Rm  		 2013  
Rm  

12.  

Loans  

    
  Summary      
  Employee housing   55   44  
  Reserve Bank of Zimbabwe (RBZ)  73   135  
  Contractors   5   16  
  Silplats   12   –  
    145   195  
  Short-term portion   (12)  (21) 
  Long-term portion   133   174  
  Summary – Movement      
  Beginning of the year   195   1 625  
  Loans granted during the year   22   7  
  Interest accrued (note 28)  7   37  
  Impairment (note 34)  (71)  (1 098) 
  Repayment received   (17)  (364) 
  Exchange adjustment   9   (12) 
  End of the year   145   195  
  (i) Employee housing      
  Beginning of the year   44   39  
  Loans granted   10   4  
  Interest accrued   7   6  
  Repayment received   (6)  (5) 
  End of the year   55   44  
  Short-term portion   (6)  (5) 
  Long-term portion   49   39  
  These loans relate to the home ownership scheme whereby non-interest-bearing loans are provided to qualifying employees of Impala and Marula. These loans are interest-free and repayable over 20 years from grant date. The average remaining repayment period is between 16 and 20 years. The effective interest rate is 9% (2013: 9.0%). These loans are secured by a second bond over residential properties.      
  (ii) Advances      
  Beginning of the year   –   1 402  
  Loans granted   –   –  
  Interest accrued   –   29  
  Repayments received   –   (339) 
  Impairment   –   (1 053) 
  Exchange adjustment   –   (39) 
  End of the year   –   –  
  Subsequent to a default by a toll refining customer on its loans in the prior year, the Group lodged a legal claim in Pennsylvania for the full amount due. Since then the parties have agreed that the dispute be heard in the London Court of International Arbitration, which process is currently under way.      
  (iii) Reserve Bank of Zimbabwe (RBZ)     
  Beginning of the year   135   168  
  Impairment   (71)  (60) 
  Exchange adjustment   9   27  
  End of the year   73   135  
  The loan to the RBZ emanates from the dollarisation of the Zimbabwean economy which resulted in the stay of the agreed repayment of the loan in Zimbabwean dollars. The RBZ has acknowledged the amount due and recommended to the government of Zimbabwe to assume the debt. No fixed terms of repayment or interest payable has been set by the government of Zimbabwe. Given the circumstances, provision has been made for the long-term real value of the outstanding amount.      
  (iv) Contractors      
  Beginning of the year   16   16  
  Loans granted   –   3  
  Interest accrued   –   2  
  Reversal of impairment   –   15  
  Repayment received   (11)  (20) 
  End of the year   5   16  
  Short-term portion   (5)  (16) 
  Long-term portion   –   –  
  These loans bear interest at 7% (2013: 7%) per annum and are repayable within the next 12 months. None of the loans are past due.      
  (v) Silplats      
  Beginning of the year   –   –  
  Loans granted   12   –  
  Interest accrued   –   –  
  Repayment received   –   –  
  End of the year   12   –  
  Short-term portion   (1)  –  
  Long-term portion   11   –  
  The loan was granted during March 2014 and bears interest at the prime lending rate calculated monthly in arrears. Fixed monthly repayments of R172 706 are payable over 95 months with the final payment in December 2022.