France, UK take lead in Zimbabwe debt talks

Zimbabwe has received a significant boost in its efforts to resolve its debt burden after France and the United Kingdom agreed to co-chair a newly established Debt Consultative Group (DCG) under the country’s Structured Dialogue Platform. The Finance, Investment Promotion and Economic Development ministry said the establishment of the Debt Consultative Group marked an important milestone in Zimbabwe’s debt resolution process and demonstrated growing international confidence in the country’s economic reform agenda. The Debt Consultative Group will also play a central role in advancing Zimbabwe’s US$2.7 billion arrears clearance and debt restructuring roadmap, which is aimed at restoring the country’s debt sustainability and rebuilding confidence among international financial institutions and development partners. “The forum will coordinate engagement with creditors, support implementation of the 10-month International Monetary Fund (IMF) Staff-Monitored Programme, and advance Zimbabwe’s US$2.7 billion arrears clearance and debt restructuring roadmap, paving the way for restored access to concessional international financing,”the ministry said. The ministry said restoring normal financial relations with international creditors remained one of the government’s key economic priorities, as access to affordable long-term financing is critical for infrastructure development, industrialisation and sustained economic growth. “The progress made under the Structured Dialogue Platform reflects the commitment of both Zimbabwe and its international partners to finding a durable solution to the country’s debt challenge through constructive engagement and economic reforms,” the ministry said.. The establishment of the Debt Consultative Group is expected to strengthen coordination among creditors and provide renewed momentum to Zimbabwe’s debt resolution agenda.

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