via Zimbabwe must clear debts to get funds – NewsDay Zimbabwe August 3, 2015
Zimbabwe needs to clear its debts to access funds from the international market, Bankers Association of Zimbabwe (BAZ) president, Sam Malaba has said.
BY Stephen Chadenga
Malaba said the country’s international re-engagement with multi-lateral financial institutions was being hampered by a hug external debt, which he said needed to be re-paid to access international finance.
The country has an external debt of $6,8 billion, arrears to multilateral institutions of $2,2 billion, Paris Club arrears of $1,7 billion and $6 million owed to non-Paris Clubs.
“In order to raise capital on the international market we must be able to repay our international debts,” Malaba said at the Confederation of Zimbabwe Industries (CZI) congress that ended in Gweru last Friday.
“For us to borrow internationally we need to clear our debts and accumulated arrears and in our case we have $2,2 billion owed to multi-lateral institutions making it impossible for us to access international capital from International Monetary Fund, World Bank and African Development Bank.”
He said failing to settle debts made Zimbabwe not credit worth and a high risk country for investors.
Malaba said the country had the best climate and vast minerals but investors continued to shun it as a business destination.
“We have to address the issue of debts, sanctions such as Zidera from the United States and put in place consistent economic policies,” he said.
COMMENTS
ZIDERA has zero effect on whether a foreign business is considering investing in the country. Of much bigger concern is the country’s clear lack of respect for property rights, an unsustainable debt to GDP ratio which indicates political volatility, and the odious Indigenization policy whereby companies must give up 51% of their assets for zero compensation.
Even if government fixed all of those issues, it would still take several years, post-Mugabe, before investors would seriously consider risking their money in Zimbabwe. So long as Mugabe is the face of the country, investors will stay far, far away, because he’s proven over and over again that he’s a liar and not to be trusted.
How absolutely shocking! Others expect debt to be repaid before they will lend any more (Iran too, I see)
This is deeply Un-African and totally against the spirit and ethics of Zanooo, who believe that all loans are actually gifts and NEVAH need to be repaid.
Even the bloody Chinese are asking for their money back, despite grovelling visists by the Goblin last year and the Crocodile this year. Perhaps Zim should consider sending a human instead of these beasts? But – are there any?