Govt seeks new World Bank, IMF loans

Govt seeks new World Bank, IMF loans

via Govt seeks new World Bank, IMF loans – New Zimbabwe 15/10/2015

ZIMBABWE will seek fresh loans from the World Bank, IMF and African Development Bank (AfDB) as it struggles with slowing growth, subdued commodity prices and high unemployment, finance minister Patrick Chinamasa said on Thursday.

President Robert Mugabe’s government started defaulting on its debt to the IMF, World Bank, African Development Bank and several Western lenders in 1999 and is struggling to emerge from a catastrophic recession that ran for a decade until 2008.

Without any balance of payment support and starved of foreign credit, Zimbabwe is running its budget hand-to-mouth, leaving it with virtually no money for infrastructure.

“What we agreed with the three multilateral institutions, is that we start now a country financing programme,” Chinamasa said, without giving details on the amount of funding Zimbabwe was seeking.

Chinamasa said it would first be borrowing to help pay the $1.86 billion in arrears it owes the three multilateral institutions, which would help reduce interest costs and avoid default penalties.

Zimbabwe will use drawing rights it has with the IMF to clear the $110 million in arrears it owes the fund, while loans from the African Export-Import bank would be used to clear $601 million in arrears with the AfDB.

The troubled nation will raise cheaper loan capital to clear $1.15 billion in arrears to the World Bank.

“You are substituting one debt with another but with a different time frame and a different interest rate and then you don’t suffer the penalties,” Chinamasa told reporters.

“Much of the debt that we have accumulated with our creditors is arising from default.”

COMMENTS

WORDPRESS: 4
  • comment-avatar

    “You are substituting one debt with another but with a different time frame and a different interest rate and then you don’t suffer the penalties,” Chinamasa told reporters.

    Kkkkkkk. This is just another zanu pf “gono-mics”. Obviously zanu pf idiots will go over the moon – ululating, gyrating & singing all sorts of praises for Patrick the economic hero. Just like they did during their idotic “from zero to hero mantra”, when the same clowns believed that someone could fix a bleeding economy by mere cancellation of zeros. Now Patrick is saying borrowing from one lender A to pay back another lender B is they way to fix a bleeding economy; and zanu pf idiots will all believe it any way.

    Rubbish, isn’t it?

  • comment-avatar
    Johann 3 years ago

    It would take an evil bunch of morons to lend these guys any more. Don’t be surprised if they get the money.

  • comment-avatar

    Mbavha dzevanhu hamuneti nekukwereta chabuda hapana. Kukwereta mari kuti musheyane mazanu of.where did you put all the money you stole and still stealing from the diamonds, gold and etc.zim is rich in resources and we are not even supposed to be borrowing. People don’t even have jobs and you keep talking of borrowing when the industry is dead, in your heads as parliament where will you get the money to pay back.Look at your stupid indignation which is doing rubbish to the zim economy what are they bringing to the table nothing, you pieces of shot when are you going to open your eyes and see the world.You are worthless beings with no remorse no vision at all, even animals think better than you zim leaders corruption, humbavha, humhondi that’s all in your heads. We don’t have a future as long as we have people like you in govt.Plenty of educated people who love their country but being led by brain less government who are greedy and cannot think about the future. Shame on you

  • comment-avatar
    moyokumusha 3 years ago

    So you borrow to clear your debts. yes, but I bet at 3 times the interest rate which will consume any penalties. These clowns are just getting deeper and deeper into debt. UZ economics and doctorates. kkkkkkk

    When will they accept it is them who are the problem and step aside