Zim re-engaging with international financial institutions

Zim re-engaging with international financial institutions: Chinamasa

FINANCE Minister Patrick Chinamasa has said Zimbabwe is re-engaging with the international financial institutions to enjoy the benefits of being a member and access lines of credit.

Source: Zim re-engaging with international financial institutions: Chinamasa – NewsDay Zimbabwe July 6, 2016


BY VICTORIA MTOMBA

Speaking during an interview with BBC on HardTalk on Monday, Chinamasa said Zimbabwe was a shareholder in the World Bank, International Monetary Fund (IMF) and was largest shareholder in African Development Bank from the sub Saharan Africa region.

As a shareholder, the country is entitled to enjoy benefits for its membership. Chinamasa was being interviewed on BBC HardTalk by Zeinab Badawi during his visit on reengagement with United Kingdom on arrears clearance.

“So all we are doing with reengagement is to enjoy the benefits of our membership access to credit. The engagement is to clear our arrears to enjoy the benefits of our membership and we are not ashamed of that,” he told the BBC HardTalk presenter.

Chinamasa, central bank governor John Mangudya and other government officials were in the UK for the re-engagement process towards arrears clearance. The country began talks with its creditors in October last year to clear the $1,8 billion arrears so Zimbabwe could access credit from financial institutions. Mangudya told NewsDay recently that the country will clear $110 million which is part of the $1,8 billion this year. Zimbabwe’s total debt to creditors is $10 billion.

The country is waiting for a medium term plan from the IMF after it successfully implemented the 15-month Staff Monitored Programme (SMP) in December 2015. The IMF team headed by Domenico Fanizza was happy with the way the country has met its targets both qualitative and quantitative targets when he came for a review during the first quarter of this year.

Chinamasa told BBC HardTalk programme that the engagement process was not an overnight event, but a process. Zimbabwe has been on SMP under the IMF. The SMP is an informal agreement between country authorities and fund staff to monitor the implementation of the authorities’ economic programme. Zimbabwe began the SMP in October 2014 through December 2015.

The SMP — a 15 month programme will help Zimbabwe normalise its relationship with some of its creditors.

COMMENTS

WORDPRESS: 4
  • comment-avatar
    Joe Cool 3 years ago

    I wouldn’t have thought that access to credit was an entitlement, particularly by a bankrupt member that can’t repay its debts without resort to borrowing from one member to repay another member. Who carries the loss when the music stops?

    I also wouldn’t have thought that Zimbabwe was the AfDB’s largest shareholder south of the Sahara. Is RSA aware of this?

  • comment-avatar
    mandevu 3 years ago

    sorry Chinamasa nobody believes you anymore. Time to go home and start packing your bags for wherever you have stashed the loot

  • comment-avatar

    Ever heard Chako ndechako, seva uchisiyira muto! Diamonds were discovered at a very desperate time for Zimbabwe. That was a lost chance to settle debts and put our house in order. Without vision a people will perish.

  • comment-avatar

    Nobody is going to let these clowns have a cent, its all about to collapse and everyone knows it.