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ZIMBABWE pays US$125 million to external creditors since 2021

ZIMBABWE pays US$125 million to external creditors since 2021

Story by Stanley James, Business Editor

Zimbabwe’s drive to engage and re-engage with multilateral partners is on track, with Treasury having paid tokens worth more than US$120 million to external creditors since 2021.

Statistics from the Public Debt Management Office reveal that cumulative payments to the World Bank have gone above US$70 million.

Zimbabwe has also paid US$37,4 million to the African Development Bank, US$5,6 million to the European Investment Bank and US$12,8 to each of the Paris Club bilateral creditors.

The payments which have been made since 2021, are in line with government’s thrust to restore normal ties with multilateral financiers.

Zimbabwe Microfinance Institutions Executive Director, Mr Godfrey Chitambo and economist, Dr Zack Murerwa outlined the importance of token payments to external creditors.

“It signals the extent to which the government is serious about making headways or inroads in ensuring that the huge debt overhang is solved. Although the tokens are being made the significance of such a trend is that it shows the commitment to engage and re-engage with these multilateral financiers and development partners, what it does is mainly linked to restoring normal relations and ensuring that a sustainable debt resolution becomes a reality,” he said.

Mr Zack also said, “The Second Republic needs to be hailed for its bold stance on this arrears and debt resolution strategy that is premised on the need for government and the multilateral institutions to find each other. It therefore provides a platform to which Zimbabwe is fulfilling the promise of clearing debts, because the economy also needs these global financiers mainly on the need for the private sector to access loans or offshore credit lines at concessionary rate.”

Treasury recently revealed that the huge external debt overhang is crippling the nation in accessing fresh funding, stalling socio-economic development, and hindering growth targets.

Zimbabwe’s arrears clearance, debt relief and restructuring roadmap is being championed by African Development Bank President, Dr Akinwumi Adesina and former Mozambican President Joaquim Chissano.

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