NGO Says Zim Should Stop Servicing External Debt

via NGO Says Zim Should Stop Servicing External Debt by Mark Nthambe VOA Zimbabwe

The Zimbabwe Coalition on Debt and Development (ZIMCODD) says the government should stop servicing the country’s debt and prioritize service delivery until a proper debt audit for the southern African nation is done from the Ian Smith era to the present day.

ZIMCODD chairperson Joy Mabhenge says the government should not incorporate debt servicing in the budget that it is working on, adding the Zanu-PF government should for now prioritize improving the welfare of the general public.

Zimbabwe is currently struggling to service an estimated $10 billion debt owed to international lenders such as the World Bank and the International Monetary Fund (IMF), among others. This is in addition to the domestic debt that continues to grow by the day due to interest charges.

Finance Minister Patrick Chinamasa, who is busy trying to put together a budget, told an IMF delegation in Harare last week that the country needs financial support to boost the business sector, enabling the Zimbabwe to service its debt.

Mabhenge says Zimbabwe should conduct an audit of its debt from the Ian Smith era to date to establish if it is obligated to pay all of it.

Economic commentator Masimba Kuchera says it would be “very difficult” for Chinamasa to get any financial support as the IMF does not trust the Zimbabwe government.

Masimba Kuchera says for now the government will have to approach local companies, especially mining houses, for help in supporting its budget.

Chinamasa is expected to present his budget December after postponing it, ostensibly for consultations purposes with stakeholders.

Kuchera says the minister is having to deal with many competing interests that need funding from an empty pocket.

 

COMMENTS

WORDPRESS: 21
  • comment-avatar
    Mr Mixed Race 8 years ago

    What is the logic behind the auditing dating back to the Rhodesian period? Will this make any difference to the already known debt?The advice from this NGO, does not make any sense to me,leave the minister to think of better ways of dealing with our financial problems.Do you know what happened to ARGETINE when they defaulted on their debts payments? Please shut up and let the authorities find better ways of rescuing our country without further isolation.This country is now full of those who claim to be experts in this and that.THey rush to the media as experts in politics and economics with childish and useless ideas.

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    William Doctor 8 years ago

    Oh, that’s right. Just don’t pay. Africa has a terrible reputation as it is – and now we’ll just beg for money – while at the same time refusing to pay it back. Makes sense.

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    Charlie Cochrane 8 years ago

    Or schizophrenically they will insult the West, threaten to take over their companies, tell them to go to hell, pay a paltry $150000 off the $10billion debt, state that they are ready to renegotiate their 51% indigenisation plans and then beg the West for financial assistance……………….if this lot were on trial they’d be declared insane!!! THEY ARE INSANE!

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    Chinamasa can’t sleep at night. He knows who stole the funds salted away near east

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    Nyoni 8 years ago

    Get credibility first then beg .

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    Jenandebvu 8 years ago

    @ Joy, ma Banking and Finance ekuSingapore aye aye. Servicing your debt is a committment to the lenders that if yu give me money, I will honour my side of things. It unlocks other lenders to come on board. 2ndly, as a director u know a thing called security, do you? Whatever that security pledged ll be taken away. 3rdly, joy there are worse repucation in not serving than struggle to service. You advice is unschooled.

    ZPF took over from Smith in 1880 or so, 133 year ago, by the Rob was young favourite intellectual of the west, infact he got the best financial term than any country getting independence in the world. As a highly learned guy, with the best advice of Dr. Kombo Moyana, he appended his signature to the IMF terms.

    I heard u say I only married at 18, can you now go back and audit you husband’s physical, financial and social standing and see if he was not better suited to my sister who looks prettier than you? Be realistic girl, learn to Zip your mouth if yu know not the subject

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    Jenandebvu 8 years ago

    Sorry Joy, I feel bad, you are entitled to your opinion but next ensure your contributions do make sense. Sorry my sister

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    Umm, ZANU-PF stopped servicing Zimbabwe’s foreign debt in 1997. Are you saying that they’ve been on the right track for 33 years and should just continue with their same policies?

  • comment-avatar
    Africanson 8 years ago

    Oh my God we are in deep trouble

  • comment-avatar
    Jrr56 8 years ago

    OMG they get paid to come up with this nonsense

  • comment-avatar
    Mwanawevhu 8 years ago

    Who is this idiot called Joy?Anyone who spews such nonsense should be sent to milk Grace’s goats

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    msizeni silwelani 8 years ago

    We pleaded with councils to write-off debts on our people, why cann’t the International Financial Institutins do the same to a Zanu pf govt? (mugabenomics 2013).

    Meanwhile we have amongst us our very own daughter who graduated with a finance degree, now working as a milkgirl to gain experience, lets hear from her. My kith, fellow villagers, thus the reason we sent her thus far to help us from this quandary. The elders say ukuzala yikuzimbela. Lets hear from untapped brains, i mean virgin wisdom acquired across the seas.

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    suziq 8 years ago

    @Joy Not sure if you are aware of this but when Mugabe took over from Ian Smith inflation was 2% unemployment 5% and that was even after 10years with sanctions…Mugabe’s record inflation trillion $ unemployment 90%

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      MikeH 8 years ago

      Spot on Suziq and they were serious sanctions too, what fun it was to bust them.

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    Sometimes it is just better to lise others than ukuphonguntshuma. Defaulting payment will be an international crime but maybe Chinamasa can save the country by accepting the advice from this Zanupf NGO. Then the International community will see for itself that we have total lunatics ruling us.

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    george shava 8 years ago

    JOY YOU A BUFFOON AND AN IDIOT. WHAT IS THE LOGIC HERE, SURELY THIS NGO IS REPRESENTED BY A FOOL. ENGAGE YOU MIND BEFORE YOU OPEN YOUR DIRTY BIG MOUTH. NYIKA YEDU YAORA CHOKWADI

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    Mazimbo nyaya yokutuka munhu apafungwa dzake makaiwanepi. Nyaraiwo

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    Legally speaking, Zimbabwe’s national debt is null and void under the illegal sanctions by the West. If the lenders are the enablers to incapacitate the borrower from efforts to generate funds to meet its financial obligations in this case, no payments are due or payable by the borrower unless and until such conditions imposed by the enablers prohibiting the borrower from its capacity to pay are fully removed. In such case when the sanctions are removed, Zimbabwe would re-negotiate its legal obligations with clock setting back to the time and date when the sanctions went in effect. No interests shall be payable for the entire period during the sanction enforcement regime. Someone should read the international laws and the treaties! Zimbabwe does not owe one cent to any foreign countries (friends and foes) till all sanctions are suspended and Zimbabwe is back on track before the sanctions went in effect!

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      Boss MyAss 8 years ago

      YOU HAVE ABSOLUTELY NO CLUE OF WHAT IS GOING ON AROUND YOU AND AROUND US. DO YOU LIVE IN ZIMBABWE FOR SURE ?

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    Dream on!