Zim to lobby for $6.1b debt write-off

via Zim to lobby for $6.1b debt write-off 22/01/2014 NewZimbabwe

ZIMBABWE will this year actively lobby creditors to have its $6,1 billion debt written off after completing an audit and validation of the obligations last year, a cabinet minister has revealed.

The audit and validation exercise established that Zimbabwe’s debt was $6,1 billion contrary to initial International Monetary Fund estimates of $11 billion.

Finance minister Patrick Chinamasa said the country would seek debt relief and also lobby for fresh assistance to rebuild its capacity to meet its obligations.

“We will reengage the auditors for debt relief. We are looking at a number of ways of finding innovative debt relief. AfDB agreed to look at that while helping us with some funding, although this is still in small way,” he said.

Chinamasa said government would continue to ask multilateral creditors for additional funding to rebuild capacity to meet obligations as lack of resources means the country cannot make any meaningful progress.

Head of Zimbabwe Aid and Debt Management office in the Finance Ministry, Andrew Bvumbe, said the ministry will this year actively seek ways to resolve the country’s debt issue.

He said the country had engaged each of the creditors and assessed each loan, interest accrued and the penalty to validate the country’s real indebtedness, which put the country’s total liabilities at $6,1 billion.

“We have looked at the highly indebted poor countries initiative and we will look at other alternative ways outside the HIPC initiative,”  Bvumbe said.

According to the audit, $4,4 billion of the country’s total debt to bilateral and multilateral creditors is in arrears and most of it to top five Paris Club members Germany, France, Japan, UK and US.

The Paris Club is owed $3,017 billion, non-Paris Club $572 million, AfDB $636 million, World Bank $1,348 billion, IMF $125 million, European Investment Bank $302 million and others $75 million.

The validated debt profile pertains to public and publicly guaranteed debt and excludes private sector and Reserve Bank of Zimbabwe debt.

Resolution of Zimbabwe’s debt is key to normalising relations with the international financial institutions and the bilateral creditors. The debt has become a serious impediment to the country’s developmental agenda.

COMMENTS

WORDPRESS: 17
  • comment-avatar

    Every Zimbabwean would love the debt to be cancelled.However Chinamasa must know the requirements to quality for dwbdt cancelling.Among them are
    1 The country must have just suffered natural disaster,like earthquake, Tsunami , severe drought, which destroys almost all structures of economic performance.Haiti qualified,Mozambique during cyclone eline,Rwanda after denocide
    2 You must have an economic policy which favours domestic and foreign investment.Now Zimbabwe is saying no to foreign ownership
    3 The backbone of the economy must be protected.If changes are to occur, consultations have to be made with the lending agencies.Zimbabwe said we take land Jambanja style
    4 Human rights have to be upheld
    5 Corruption must be curtailed.Zimbabwean PSMAS Cuthbert Dube earns US 230000, parastatals are militarised.
    6 National budget to be allocated with the main aim of stimulating production

    This is just some of the guidelines to consider if we relly want to have our debt cancelled.You cant say cancel the debt when you can not account for diamond revenues.So Mr Chinamasa I urge you to consult Doctor Mthuli Ncube , Doctor Nkosana Moyo on the issue.Do not make it political.Seek knowledge first before you rush to the West with ill prepared request

    • comment-avatar
      zimbo 8 years ago

      I concur – especially on point 5 – If we have the bucks to pay crazy salaries then we must suffer the consequences!

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    chikhangalapfula moses shoko 8 years ago

    yes, we should see, this, wipped+off as soon as possible. its, good for the people.

  • comment-avatar

    Will pigs fly? These criminals now utterly desparate

  • comment-avatar
    John Thomas 8 years ago

    The debt should not be written of as long as these criminals rule

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    bingo wajakata 8 years ago

    What debt its our money they stole in the first place, tell them Chinamasa, who are they to demand that we payback what we borrowed, they put sanctions on us so we will not pay. They can go to hell and we shall keep our Zimbabwe. Even South Africa should not ask for money we owe them, we supported them during their liberation so they owe us. Regarding the surety for the money we borrowed for the rehabilitation of Plumtree-Mutare road, its their problem, they must pay the Development Bank of Southern Africa. They knew fully well that we were broke and had no capacity to pay yet they supported us, its their problem, we will pay when the Platinum refinery is built.

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      Bingo Bingo Bingo! And you hope that this approach will get you what you want? Dai maikwanisa maitakura matemo ne matanda kunoita invasion yema bank ne mapurazi eikoko hanti?? Motora mari yese mouya nayo moisa pamupinyi nekuroora mamwe madzimai hanti??And tell me when Mozambique helped in the war of liberation did you pay them back or any other country for that matter?
      Mbudzi dzakadya mufenje baba vangu Shava imi!!

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      Eiesh when the refiner is built we will take it and like our savior (Mr Kasukuwere) said we will pay for it like we paid for the farms and other things we took. Maybe it would be better for pigs to fly

    • comment-avatar
      Nkiwane (M'kiwa) 8 years ago

      Hahahahahaha.

    • comment-avatar
      Fallenz 8 years ago

      Who is the “us” on whom sanctions were placed? Is your name on that list of a dozen Zim crooks? And explain how Grace not being able to go shopping in Paris has been responsible for crippling the Zim economy.

      Since you must be one of the insiders, please tell where the missing diamond money went. Where is the stolen food aid funds? How did Mugabe and the ZANUPF bigwigs get so wealth so quick? What was the source of their money? If they’re so good at making the millions, why aren’t they using their financial acumen to rescue the Zim economy after it collapsed so disastrous?

      God will repay those who have done evil. There will be no rest for their souls. Disaster will come as a thief in the night, and then what will their ill-gotten gain be worth to them.

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    Why should the debt be cancelled?That debt can easily be paid off from all the stolen money stashed away in dubious accounts Overseas and attaching for sale all these thieves’s so called businesses. Few can justify that much wealth anyway in a court of law and I doubt they pay their taxes anyway so all in all it all belongs to the state. But I forget we have no law.

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    Zvakwana 8 years ago

    Asking for debt relief when billions of dollars in diamonds go out the back door is a joke.

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    Johnson@yahoo.com 8 years ago

    Mr Chinamasser, Sir how can you “give your cake and eat it too.” Negotiations are win – win not one takes all. You are creating a hostile macro economic environment and even expecting foreign direct investment. Is that noT asking for the impossible under the circumstances? Stop wasting people’s time and …..pliz resign or Mr Mugabe must reassign to Rural Housing or some other appropriate place….and i hope it happens soon enough. Guys why are you so insensitive? Do things to attract FDI so that young People get jobs and have a sober indegenisation policy where ‘able people’ buy shares from major companies to the extent of about 25% localisation or even less in a win-win manner. We will all gain. Those with money will buy shares in companies, youth will get jobs and the government will gradually empower people. we are not agAinst indegenization perse but we want ALL STAKEHOLDER INVOLVEMENT AND INVESTOR FRIENDLY LANGUAGE AND POLICY….AND YOU CAN DO IT GUYS UNLESS YOU DON’T WANT. IF YOU DON’T DO IT BY JULY THEN ONLY GOD KNOWS.NIHILISM OR LAWLESSNESS IS LIKE A FRANKENSTEIN MONSTER WHICH WILL CERTAINLY EAT ITS OWNER. BE WARNED SUCH POLICIES AS YOURS ALWAYS BACKFIRE. MARK MY WORDS. IF THAT DOES NOT HAPPEN THEN I HAVE NOT SPOKEN!!!!!!!!!!!!!

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    moyokumusha 8 years ago

    It is not going to happen – period.

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    People have missed the point those running the show are squandering everything and then want the debt cancelled

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    Mapingu 8 years ago

    Oosssh! Now the confused Patrick seeks to confuse Zimbabweans more than they are currently are.

    Patrick and many Zanu pf are well known for raving & ranting about ‘illegal sanctions’ by IMF and other international bodies, as well as some countries like UK & US. Patrick & and like-minded Zanu pf apologists have convinced all and sundry that Zimbabwe’s problem are all due to ‘illegal sanctions’, not debts or anything else.

    The question is: Why is this Chinamasa now focusing of others other things such as ‘debt relief’ which he is now clamouring about, yet for along long time Zimbabweans have been told by the same guy that it is ‘illegal sanctions’ which are the problem. All of us thought as a zanu pf top lawyer, he was deliberately given the finance minister portifolio in order to empower him to challenge the ‘illegal sanctions’ in some court of law – at The Hague, or even in Zimbabwe for that matter.

    Isn’t logical that if something is known or presumed ‘illegal’ then there should exist a legal route or instrument to satify it so.

    So, my take is Chinamasa must tell Zimbabwean masses what he is doing about ‘illegal sanctions’ himself & his zanu pf colleagues have been telling Ziboz about for years.