via Zimbabwe plans to clear $1,8 billion arrears – NewsDay Zimbabwe September 8, 2015
ZIMBABWE is looking towards a strategy to clear the combined $1,8 billion in arrears owed to the African Development Bank (AfDB), International Monetary Fund (IMF) and the World Bank, a move that will enable the country to access capital from the three financial institutions.
by VICTORIA MTOMBA
Speaking at a Press conference yesterday, Finance minister Patrick Chinamasa said the options that the country will pursue to clear the arrears were to be ascertained as it was too early and depended on the goodwill of creditors.
“We are looking at a strategy to clear the $1,8 billion arrears.When we do so, this opens up engagement with the Paris Club, mostly creditors from the Western countries.”
The country owes both internal and external creditors $8,4 billion.
Chinamasa said the country needed to get out of the arrears to enjoy benefits of membership of the IMF.
Chinamasa said the country has so far met the quantitative and structural targets but the IMF review team will determine whether Zimbabwe’s assessment was correct.
“We are working out a strategy to meet all creditors — multilateral, Paris Club and bilateral — and also seek attendance of key decision-makers so that we will be able to clear our debts and we will be able to access [the] capital,” he said.
Chinamasa said the country has demonstrated strong political will in the current position as it met its Staff-Monitored Programme targets first review in December 2014.
“As far as political will is concerned we have got it. The issue of funding you have to look at it as a step by step process and the first step is engagement,” he said.
IMF alternate executive director African Group 1 Chileshe Mpundu Kapwepwe, who is in the country for the first time to get first-hand information on the economic performance of Zimbabwe, said her role was to articulate the country’s position on the IMF board. She said the country will have sideline meetings at the annual World Bank meetings in Lima, Peru, next month.
She said most countries including Zimbabwe are facing a decline in commodity prices due to the challenges in China.
Kapwepwe said the revenue side was also declining due to the impact of drought and the under-performance of the manufacturing industry urging African countries to diversify in commodities.
Zimbabwe has set up a committee chaired by Reserve Bank governor John Mangudya to resolve the debt crisis. Other members of the committee are drawn from AfDB, World Bank and IMF.
The committee will produce a paper that would be presented during the IMF/World Bank annual meeting in Lima next month.
COMMENTS
The IMF, World Bank, AfDB etc MUST know that Zimbabweans are keen and DESPERATE to know how the $8.4billion was spent. There is STRONG suspicion that the money ended up in top ruling party politicians’ pockets. Why? Because such a large sum could have easily transformed the economy.
Giving Zimbabwe more money before this is done will be grossly unfair to citizens! No disclosure NO more money!!!
Robing Peter to pay Paul
ZANU talk to Bob the cash is stashed in the Swiss Bank or Bank of Singapore.
For the inevitable lavish lifestyle in exile as already planned.
So Bob returned empty handed from New York except the dippers and disgraceful shopping bags.
Not in 1000 years Bob
I know it will never happen, but justice would demand that the thousands of ZANU’s who have built mansions all over Harare settle all of the governments debt since they are the ones who stole the money
no money in no money out – cant pay this when over 80% of revenue is spent on govt wages. Pipe dreams and wishful thinking and just shows how flat out of any ideas or understanding any concept that make an economy run. ZANUPF is a failed state so is Zimbabwe. Welcome to the stone age.
If it is true that Zimbabwe (Zim) is a failed state and has no possible way of paying debts, either now or in the future then perhaps it should enter into merger talks with a contiguous neighbor. My preference would be RSA. A long shot non-contiguous partner would be to become a territory of China, or worse the USA. The USA would gladly pay a few billions to acquire land for a base but unfortunately I think they would want direct access to the sea.
Is Zim ruined?