HomeNewsGovt pays $11,5m to lenders

Govt pays $11,5m to lenders

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TREASURY in September made payments amounting to close to $11,5 million to various international institutions it owes, including the International Monetary Fund (IMF).
Report by Mernat Mafirakurewa

Statistics contained in the consolidated statement of financial performance for September show that the government made a payment to IMF of $2,5 million.

China Export-Import Bank was paid $6,7 million, Africa Export-Import Bank was paid $2 million and $143 000 to the Arab Bank for Economic Development in Africa.

Zimbabwe, which has an estimated external debt of $10,7 billion, including arrears, hopes to sign a memorandum of understanding with the World Bank as plans to settle debt arrears remain on course.

The government adopted the Zimbabwe Accelerated Arrears Clearance, Debt and Development Strategy (Zaadds), a debt plan to deal with the country’s debt which has made it difficult for the country to access long-term capital.

“It’s possible. I know the goodwill that is out there.”

“We have made so much progress on Zaadds and the negotiations are so advanced that we should be able to conclude a memorandum of understanding before the end of this year,” Finance minister Tendai Biti told a recent post-budget breakfast meeting.

“We have literally moved mountains. So we should be able to capitalise on that goodwill.”

The IMF early this month relaxed most restrictions on technical assistance to Zimbabwe, opening the way for future staff-monitored programmes and full normalisation of relations.

Zimbabwe in 1999 was declared ineligible to use IMF general resources and was removed from the list of countries eligible to borrow resources under the Poverty Reduction and Growth Facility (PRGF) after defaulting in mid-February the same year.

As of June 12, 2002, Zimbabwe’s overdue obligations totalled $132 million, including about $74 million to the IMF’s general department and $58 million towards the PRGF Trust.

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