Zimbabwe Fails to Clear US$8 Billion International Debt

via RadioVop Zimbabwe – Zim Govt Fails to Clear US$8 Billion International Debt- Chinamasa  April 25, 2014

Zimbabwe’s Minister of Finance and Economic Development, Patrick Chinamasa says government has no capacity to clear its international arrears and principal debts with the Bretton Woods institutions that include the International Monitory Fund (IMF) and the World Bank.

The debts amount to US$8 billion.

The amount excludes debts owed to the Reserve Bank of Zimbabwe (RBZ), various sectors in the domestic market, as well as bilateral debts owed to various nations with whom the country enjoys good bilateral relations.
Speaking at a media briefing here, which was aimed at clarifying the government relationship with the Bretton Woods institutions,  Chinamasa said while the global financial institutions blame the poor state of the economy on poor policies, the real issue began when the government implemented the land reform programme, whose implementation led to the imposition of targetted sanctions on Zimbabwean individuals and some related companies by the West.

“We went through the land reform programme and had sanctions imposed on us, then we began to fail to honour our financial obligations. They say it is all because of poor policies but the real issue is that sanctions killed the economy and we are still in that situation now,” said Chinamasa.

The Finance Minister said while efforts have been made to find other avenues of accessing finance from the IMF, it has been impossible for the country, as the framework to assist poor countries have requirements in which Zimbabwe does not qualify.

He said out of the few options remaining for the country to access funds, foreign direct investment and the Zimbabwe Stock Exchange are the best options since the risk remains with the investor, adding that consistency and clarity on economic policies are also a must as they boost investor confidence.

Chinamasa said the government is also focused on recapitalising the RBZ to enable it to fulfill its mandate of being the lender of last resort, as well as becoming the banker for the government.

On the mining sector, Chinamasa said government is in the process of adopting a ‘Use or Lose It Policy’ for claim holders as it seeks to stimulate productivity.

He said there are thousands of mining claims that are not productive whose holders pay renewal fees for speculative purposes.

He said the decision is in line with the amendments contained in the Mines and Minerals Act as it will boost investor confidence in the mining industry, adding that government is also prioritising issues of linkages with other sectors of the economy.

The government is also working towards ensuring that there is accountability in diamond mining in order to realise more revenue from the sector.

The mining sector is currently the biggest driver of the economy as it attracted investments of up to US$67 million during the first quarter of this year.

The Minister of Information, Media and Broadcasting Services, Professor Jonathan Moyo; the Deputy Minister of Finance and Economic Development, Samuel Undenge and the Permanent Secretary in the Ministry of Information, Media and Broadcasting Services, George Charamba attended the media briefing.

ZBC

 

COMMENTS

WORDPRESS: 11
  • comment-avatar
    ZimJim 7 years ago

    Chinamasa,

    I think you have your head so far up Bob’s bum that every time you burp, he farts!

    Do you actually have a brain, or are you just another ZANU-PF oxygen-thief?

  • comment-avatar
    Little Dorrit 7 years ago

    Please account to the people of Zimbabwe for this debt – down to the last till slip. Suspect a lot of till slips for a LOT of cars , junkets, cataract operations, the odd High Rise apartment and other
    trinkets. And please do bring into account revenue earned from diamonNd and mineral sales and “bank notes and postage stamps”.

    We demand this. We are not answerable to you, Minister- you are a civil servant answerable to us.

  • comment-avatar
    roving ambassador. 7 years ago

    Until we are true to ourselves and accept we have failed, then there is no hope of correcting the ills .Zanu has no capacity to admit they messed up and are blind to the mess ,so we heading towards a massive crash.
    Let it be.

  • comment-avatar

    The 8 billion is lodged in an elite cliques foreign banking accounts and assets acquired with looted national funds. God will expose!

  • comment-avatar

    Nothing will change until Chinamasa and ZANU stop lying to themselves about the sanctions issue and start respecting the laws of economics and also start respecting private property rights. Threatening investors with loss of their investments because they are “speculating,” in hopes of making a profit is counterproductive and sure to drive more investors away from Zimbabwe.

    ZANU loves to play with words to deflect attention from their own criminal behavior. In the ZANU universe normal peaceful democratic activities are labeled “regime change;” restrictive measures against specific individuals become, “illegal sanctions” against the whole country; transferring funds between bank accounts becomes, “externalization;” racist asset grabs are called, “indiginization;” and normal investment activity is labeled, “speculation.” Until ZANU stops hiding behind words, people will not trust them.

  • comment-avatar
    Jono Austin 7 years ago

    Does anyone doubt that if zanu were all killed that the country would not be a better place?

  • comment-avatar
    Mlimo 7 years ago

    these fools live in a paradise called lala land. Here anything is possible if you dream it. If you cant pay your debts don’t borrow the money and you have to cut back on the parties, the overseas trips the Vatican trips the lies etc. that’s not going to happen under zanupf.

  • comment-avatar
    Jono Austin 7 years ago

    ‘sanctions by the west’ = targeted travel sanctions. But China and the East didn’t impose ‘sanctions’ so what is the problem?

  • comment-avatar

    He should just paint butterflies on his head!!

  • comment-avatar

    They should be forced to clear the debt and not get away with it

  • comment-avatar
    Petal 7 years ago

    The problem is that some are gobbling up the money and possibly it would not come as a surprise that they are evading tax!