Zimbabwe Seeks Debt Forgiveness

via Zimbabwe Seeks Debt Forgiveness by Blessing  Zulu 23.01.2014 VOAZimbabwe

Finance Minister Patrick Chinamasa has reiterated comments that the cash-strapped Zimbabwe government will soon ask for debt forgiveness and launch a fresh bid to seek new credit facilities.

The International Monetary Fund has ruled out giving Zimbabwe fresh loans until it repaid its loans.

In a report published last month, the World Bank and the IMF said Zimbabwe’s eligibility to receive assistance under their Heavily Indebted Poor Countries Initiative ‘remains unclear’. This followed Harare’s request for debt relief last October.

Zimbabwe’s high debts mean it will be cut off from accessing most external financing sources. It owes the IMF and the World Bank $124m and $1bn respectively.

The World Bank said Zimbabwe would need to agree a comprehensive arrears clearance framework with the international community.

“‘The country could potentially be eligible for assistance if it meets end-2004 and end-2010 indebtedness criteria and if it clears its arrears to the [Poverty Reduction and Growth Trust],’” the report said.

Chinamasa says Zimbabwe’s external debt stands at US$6,1 billion though the IMF says it tops US$11 billion. The country owes institutions such as the IMF, World Bank, Paris Club, European Investment and the African Development Bank.

Economists have warned that without foreign direct investment, the country’s economic crisis would worsen.

Commenting, Zimbabwe Conference on Reconstruction and Development acting Executive Director Hopewell Gumbo told VOA’s Studio 7 that an audit of those who benefitted from the loans must be carried out first before Harare can ask for a write off.

Developing countries, particularly in Africa, continue to face debilitating debt crises limiting the capacity of most African countries to develop and meet the socio-economic needs of their populace.

 

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6 comments on “Zimbabwe Seeks Debt Forgiveness
  1. moyokumusha says:

    You cannot have a president abusing these people and then ask them to be kind to you. All those years of grandstanding are coming back to haunt. Even the friends such as China are not fooled and they too are weary. What they got from us is far more than we got from them so they not going to help anymore.

  2. DL says:

    It’s all about leadership. If the president can’t lead by example, then why should anyone follow?

    I believe Chinamasa increased the President’s swag fund to $100M while allocating an embarrassingly small fraction of that to health and education for the whole country. The fact that the nation – or rather ZANU-PF – spends more to make sure that Mugabe’s ass never touches the ground, then it does feeding and educating it’s citizens, is more then enough evidence that Zimbabwe doesn’t need or deserve any money from international lenders.

  3. Only Fools says:

    Typical begging bowl lunacy from Zim. Lets borrow money on the never pay back scheme, and when the IMF don’t give us money then we cry racism. Problem solved!

  4. NBS says:

    ZPf and Zimbabwe should be seeking God’s forgiveness. When are we going to get it. We are under judgment! Plain and simple.

  5. NBS says:

    Penniless Patrick. God’s judgment! Is this guy serious/ ask for a multi billion debt cancellation and then borrow more money? And this is our Finance minister. Where is Biti?

  6. Daniel says:

    WHEN THESE FOOLS DRIVE THE ZIM ECONOMY RIGHT DOWN THE TUBE AS THEY SURELY WILL LETS HOPE MDC DONT AGAIN HELP THEM TO RECOVER.ARE YOU LISTENING MORGAN???

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