via IMF plan may relieve Zim: AfDB – DailyNews Live by Kudzai Chawafambira 5 NOVEMBER 2013
Full implementation of the International Monetary Fund (IMF)’s Staff Monitored Programme (SMP) in Zimbabwe will help reduce the country’s indebtedness, the African Development Bank (AfDB) says.
The regional institution said, in its September 2013 monthly economic review, that adoption of the SMP will also unlock new inflows into the investment-starved country and also provide direction to execute macro-economic policy.
Economic analysts say Zimbabwe needs to urgently deal with its external debt which has ballooned to a staggering $11 billion.
Under the SMP, Zimbabwe needs to increase financial consolidation, strengthen public financial management, improve transparency in revenue collection in the mining sector and reform tax policy and administration.
This comes as the move by IMF to reengage Zimbabwe in June this year marked a major step towards the country normalising relations with the international lender, which suspended its voting rights in 2003.
While its voting rights were restored in 2010, Zimbabwe has not been able to borrow from international lenders since 1999, when it started defaulting on its debt.
According to a recent report by deputy Finance minister Samuel Undenge, as at December 31, 2012, the preliminary figures of the public and publicly guaranteed external debt outstanding (exclusive of reserve bank and private sector debt) stood at six billion dollars, 62 percent of GDP.
The stock of accumulated arrears accounted for $4,7 billion (seven percent) of total debt stock.
COMMENTS
Interesting that African development bank or bank of china not interested in lending 12 billion themselves cos they know!!!!!!!!!!
The look east beggars looters plundered always take begging bowl to the west!!!!!!!!
Revenger Evenger, Dont be ignorant IMF and World Bank are not Western Agencies but every country in a member and has the right to receive funding and budget support. Thats the reason why we have voting rights. However, we have defaulted in our repayments and like every defaulter action is taken. If if Tswangirai were to come into power today he would still need to pay up the debt, and where would he get 11 billion.
Ya-a where is China? Can’t China lend its friend money to revive the ailing and shambolic economy. RUBBISH
When comments come from the DIASPORA its easy to pick. These guys are now out of torch with reality. You expect Chinamasa to tell you that China will contribute so and so on the budget before the budget is even announced. Wait for the budget.
any guesses as to what the opening exchange rate will be with the Zim $
Munzwa Z$ will not come in the next 5 years. Chinamasa said dont continue bothering me about that subject. Why do you want to feel for us, enjoy your DIASPORA salary
You are jealous are you not?. You can join them in the diaspora if you want to.
Mwenewevhu I have a better life in Zimbabwe, thanks to the land reform and more so I have a positive thinking. I am not wasting my remaining life but developing myself, if only I could invite you to my farm to see for yourself and then tell the DIASPORA of the benefits.
The most logical thing to do is to lay off a lot of non operational civil servants (minijment). All sectors of the economy have laid off workers. We had 200 000 civil servants looking after $10 billion in 1995, in 2013 we have the same number presiding over $2 billion. Something will most certainly give. This is not sustainable.
Give them land as reternchment packages and direct the savings towards Agriculture and manufacturing in order to rehire the civil servants.
There goes old Shebah again, worrying about the diaspora, the group that will get Mugarbage out when the next UN governed elections are held. This self same diaspora, that know more about Zimbabwe than Zimbabweans, are true patriots, fighting to get that Mugarbage and Dis-grace out of the country and to Singapore!