World Bank says no debt relief for #Zimbabwe

via World Bank says no debt relief for Zimbabwe, gets new country head | The Source  May 16, 2014

Zimbabwe does not qualify for debt relief under the Heavily Indebted Poor Countries (HIPC) strategy, because it has capacity for a sustainable economic recovery, a World Bank official said on Friday.

The central bank deputy governor Kupukile Mlambo last week said at a SAPES conference in Harare that the economy was heading towards recession, and called for the adoption of the HIPC strategy as a way of dealing with the country’s $10 billion debt overhang.

Outgoing World Bank country manager, Mungai Lenneiye , told The Source that while Zimbabwe had an unsustainable debt, the fact that it could produce and export meant there is still room for recovery.

“To qualify (under the HIPC) there must be a certain ratio between debt and exports but Zimbabwe is nowhere near there,” Lenneiye said in an interview.

“The Zimbabwe government has been looking at a mix of methods on using mineral resources and agriculture to grow the economy, which is a sensible thing to do.”

The HIPC program started in 1996 to assist the world’s poorest countries with unsustainable debts by offering them relief.

At its inception, the primary threshold to qualify for relief was if a country’s debt to export ratio is between 200 to 250 percent or when the ratio of debt to government revenue exceeded 280 percent.

Zimbabwe expects to collect $4,12 billion in 2014, from 3,8 billion last year.

The World Bank, International Monetary Fund  and other multinational organisations fund the HIPC programme. In 2012 they identified 39 countries as potential candidates for relief of which  33 were from sub-Sahara Africa.

The World Bank has appointed Camille Nuamah to replace Lenneiye, who has since retired.

Nuamah arrived in Zimbabwe a fortnight ago after holding a similar position in  Nicaragua.

 

COMMENTS

WORDPRESS: 14
  • comment-avatar
    roving ambassador. 8 years ago

    They are just being diplomatic. they know that part of the money is still in the hands of Zanu ,stashed away somewhere.

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    Dear fellow Zimbabweans, I mean those whose love for Zimbabwe is beyond the love of money: When are we going to read newspapers and hear lovely stories about bumper harvests,police doing good work , councils working for people and above all,a government that takes responsibility of its failures and consult the people.We are under siege from a group of heartless ,out of touch idi aminis who want to drag all of us into the doldrums.Today’s headings have no silver lining.Only gloom and gloom pictures of a once celebrated country.
    I have learnt and accepted that ZANU PF will NEVER WORRY about anyone.I feel for the worst.IMF and World Bank are there to champion economic structures which favour total participation by all including the poor.ZANU PF tell us to hell with IMF and World Bank.The ZANU clique of gangsters has amased enough wealth to run away and stay even in Cyprus.Sadly, ZANU PF has mastered the skills to bribe, divide, kill and deceive.The youth’s future is at stake .
    ACTION NOW NOT TOMORROW!!!!!!!!!!!!!!!!!!

  • comment-avatar
    Mlimo 8 years ago

    Until the acceptance of the status quo goes nothing will happen that is why zimbos were ruled by whites cos they had no clue themselves as is evidenced by 34 years of misrule. They are a weak nation.

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    Chaka 8 years ago

    Funding or no funding zimbos dont get any benefit. Let the world bank tighten screws while God helps us remove zpf. The Egyptians were strong and armed to the teeth. They could not stand the waters of the Red Sea. Lets abide in the Lord n let Him do the work. With Him weapons do not win battles.

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    It must come to a head soon as the economy is about to implode, even zanu know this and they have burnt all their boats, nobody is going to bail them out

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    Kabunga 8 years ago

    At least the World Bank can see what’s happening. The corner is getting smaller and smaller. Something’s got to give. This economy would be so easy to sort out. If only we had good positive leaders.

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    Saddened 8 years ago

    The world bank knows we are not a poor country but rather a badly run one where corruption, theft & violence are the order of the day! I say well done to them.

  • comment-avatar
    Mahlaba 8 years ago

    Zanu is heartless, they will kill to protect their loot!

  • comment-avatar
    truth 8 years ago

    For the first time i see real headings on this web, not about MDcS im sure ther is nothing to write at the moment.

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    Reverend 8 years ago

    This is good news, as every time someone sends us money zanupf steals what they can and it gives them a breath of air to continue. Total suffocation is required. Unfortunately we have the bleeding heart liberals and Cinese who keep upsetting the applecart and throwing a life line to to these murderers.

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    Funganayi Mutamiri (UK) 8 years ago

    True Zimbabwe is a wealth country which is not requiring this debt relief and can easily raise at least USD 40 Billion to kick start the economy and some of the reforms have already been stated in the recent economic forums but much more can be done to raise more. I want to help you fellow Zimbabweans but it involves costs about 5% of the amount raised for my consultation and to come up with the necessary paperwork and my team.It will require the Zimbabwean Government enacting into law protecting property rights and the reforms already stated.I am willing to be engaged and my motivation is not the money derived but the love of my fellow Zimbabweans. My email is funganayimutamiri@yahoo.co.uk.

    • comment-avatar
      roving ambassador. 8 years ago

      Yes Mtamiri, Zimbabwe is a rich country and we don’t need to borrow. We do not even need to pay consultation fee for an ailment we know .
      Zanu must go ,End of story.
      They cannot bring reforms needed.

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    George 8 years ago

    The US gives Israel $5 to $10billion dollars annually, Egypt perhaps 4 billion, millions to Pakistan, Afghanistan and Jordan. Show me a sub-Saharan country that receives a substantial amount of US Aid( and I will show you a country whose resources have been looted—Nigerian Oil,Angola, Zaire minerals). The terms of trade are always scewed to benefit a few when it comes to Sub Saharan Africa—it has always worked out to e cheaper to deal with a few corrupt Individuals) and then you wonder why there are fuel shortages in Lagos