Business / Economy
Zimbabwe's external debt to hit $7.2 billion
12 Sep 2014 at 08:25hrs | Views
Zimbabwe's external debt will hit $7, 2 billion by December this year, according to government projections.
Chinamasa said in the midterm fiscal policy debt distress has continued to undermine the economy's capacity to meet debt servicing obligations resulting in the accumulation of external payment arrears since 2000.
Chinamasa will submit to Cabinet the Debt Strategy roadmap for its consideration and approval in the coming fortnight. He said Zimbabwe is saddled with an unsustainable external debt overhang amounting to $8,8 billion as at end of June.
According to Chinamasa public and publicly guaranteed debt accounts for $6, 9 billion -51% of GDP.
Private sector debt which is however being fully serviced totalled $1,9 billion. Of the $6,9 billion public debt $5,5 billion are arrears with the balance being penalty interest.
The implementation of the debt relief strategy will entail the removal of sanctions imposed by the US and the European Union which have had a debilitating effect on the economy.
Chinamasa said in the midterm fiscal policy debt distress has continued to undermine the economy's capacity to meet debt servicing obligations resulting in the accumulation of external payment arrears since 2000.
Chinamasa will submit to Cabinet the Debt Strategy roadmap for its consideration and approval in the coming fortnight. He said Zimbabwe is saddled with an unsustainable external debt overhang amounting to $8,8 billion as at end of June.
Private sector debt which is however being fully serviced totalled $1,9 billion. Of the $6,9 billion public debt $5,5 billion are arrears with the balance being penalty interest.
The implementation of the debt relief strategy will entail the removal of sanctions imposed by the US and the European Union which have had a debilitating effect on the economy.
Source - Th Herald
