Zimbabwe Looks To Pay Of $1.8B In Debt To 3 Creditors
John Mangudya comments come after indications Zimbabwe would be paying its $1.8 billion debt to the African Development Bank, IMF and World Bank. The country was currently finalizing the technical work with International Financial Institutions.
Country officials developed a plan last year with an agreement to pay the $1.8 billion to the three creditors in order to free cheap credit lines that could reinvigorate the economy. Here’s a breakdown of the following debt the country owes:
World Bank - $1.15 billion
ADB - $601 million
IMF - $110 million
Clearing the debt to its creditors is the country’s firs step in getting rid of its overall $10 billion debt.
A paper about the strategies the country was taking to clean out its arrears was published in October 2015. And, according to Patrick Chinamasa, the country’s finance minister, the government would clear its arrears by April. He said there would be an in-depth country financing program the IMF, World Bank and ADB would support would be put in place to ensure long-term financing.
Chinamasa said the government’s measures would clear out debt arrears that included policy reform that increases the strength in confidence for the financial sector, put attention on the development of infrastructure, better the investment climate and so much more. It would also speed up public enterprises reform and better public finance management.
According to critics, the government is slow in getting these laws in action and are concerned the officials are trying to bypass the anti-graft dragnet.
Mangudya said law re-alignment was not part of the job description. He said there were so many things going on, but he’s not sure if people have to see things physically.
Christian Beddies is an IMF resident representative, and he said the county was working extremely hard to pay its $1.8 billion to its creditors. He said the government is working on modalities for each institution to clear the arrears.