HomeNewsExternal loans borrowing criteria to be reviewed

External loans borrowing criteria to be reviewed

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The government plans to review its external loans co-ordinating committee on external borrowing criteria and guidelines as part of a strategy to deal with the countrys future debt.

Finance minister Tendai Biti last week launched the Zimbabwe Accelerated Arrears Clearance, Debt and Development Strategy (ZAADDS) that will guide the country in dealing with the $9,1 billion sovereign debt.

This will allow for the development of an explicit debt management policy that will form the basis of all future debt management strategy formulation, part of the ZAADDS document reads.

The Ministry of Finance, with the assistance of the Macro-economic and Financial Management Institute for Eastern and Southern Africa (MEFMI) and African Development Bank, is in the process of recruiting qualified expertise and competent staff.

According to the policy document there is need to strengthen the capacity of Zimbabwe Aid and Debt Management Office (ZADMO) to effectively manage the countrys future debt.

In this regard, ZADMO is developing, with the assistance of MEFMI, a comprehensive capacity development and training plan, which is based on debt management capacity need assessment template, reads the document.

In the preamble of the strategic document, Prime Minister Morgan Tsvangirai said ZAADDS indicated a key commitment of the inclusive government to resolve the countrys debt overhang, which has installed the rapid implementation of the economic development agenda.

The re-engagement with the international community, especially with the international financial institutions, is premised on the country having a track record of implementing sound macroeconomic policies, Tsvangirai said.

In this regard, it is very important for our development partners to note and appreciate that Zimbabwe has since 2009 built a successful track record of implementing sound macroeconomic policies.

President Robert Mugabe said public debt was an important tool for economic development which, however, required prudent management.

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