Zimbabwe to host high-level forum on debt settlement

0

The Zimbabwean government said on Thursday that it will soon host a high-level forum on debt resolution with development partners and other stakeholders aimed at building consensus among stakeholders on the resolution of the country’s external debt. country.

Presenting the 2022 mid-term budget review and supplementary budget speech to parliament, Finance Minister Mthuli Ncube said the country’s external debt continues to weigh on the economy by restricting access to finance. long-term, low-cost financing needed to support the desired medium to long term. – forward growth trajectory.

“To address this challenge, the government has developed the Arrears Clearance, Debt Relief and Restructuring (ACDRR) Strategy aimed at restoring debt sustainability,” Ncube said.

He said African Development Bank President Akinwumi Adesina had agreed to be Zimbabwe’s champion for the debt resolution and re-engagement process.

“In his capacity as champion, he will coordinate and chair the upcoming High Level Forum on Debt Resolution,” Ncube said.

Adesina visited Zimbabwe this month to reaffirm his commitment to help Zimbabwe clear its long-standing debt. During the visit, he met with President of Zimbabwe Emmerson Mnangagwa, Minister of Finance Mthuli Ncube and representatives of international financial institutions accredited to Zimbabwe, among others.

Zimbabwe has huge external debt arrears amounting to US$13.2 billion.

Zimbabwe has tried unsuccessfully in the past to clear its huge external debt arrears through various strategies, with the latest debt arrears clearance plan, dubbed the Lima Plan agreed with global lenders in Peru in 2015, to no avail.

The Zimbabwean government has since developed a new arrears clearance strategy which it hopes to succeed with the help of the AfDB president.

In 2015 and under the Lima Plan, Zimbabwe cleared its 15-year debt arrears to the International Monetary Fund amounting to US$108 million, but this did not prompt the IMF to grant new loans to Zimbabwe, arguing that it needs to clear arrears with other international financial institutions and bilateral creditors and is also implementing a strong reform program

Share.

Comments are closed.