Business / Economy
Zidera and Zimbabwe sanctions, who is fooling who!
25 Jul 2011 at 05:25hrs | Views
United States Ambassador to Zimbabwe Charles Ray has said politicians who continue attributing Zimbabwe's economic woes on the Zimbabwe Democracy and Economic Recovery Act, 2001 (Zidera) are misinforming the nation as the law is yet to be activated.
Addressing youths at a Harare hotel after a meeting to launch the Midlands Youth Dialogue Forum was disrupted by suspected Zanu-PF supporters last week, Ray said Zidera had not yet been formally applied on Zimbabwe, contrary to claims by Zanu-PF politicians.
"The law was made to ensure that American companies and the government would vote against any applications for grants from either the World Bank or International Monetary Fund (IMF).
We have not used the law since Zimbabwe has defaulted on its debts with the two institutions and is therefore not eligible to any grants.
Anyone who says Zidera and sanctions imposed by the US are hurting Zimbabwe will be lying or are just misinformed," Ray said.
Snippets of the Act Click >>>> here for the Act
The Zimbabwe Democracy and Economic Recovery Act (S. 494) is an act passed by the United States Congress sanctioned to provide for a transition to democracy and to promote economic recovery in Zimbabwe.
Senators Bill Frist (R-Tennessee) and Russ Feingold (D-Wisconsin) introduced the bill on March 8, 2001. Senators Frist, Jesse Helms (R-North Carolina), Hillary Rodham Clinton (D-New York), and Joseph Biden (D-Delaware) sponsored the bill. The Senate passed the bill on August 1 and the House passed the bill on December 4. President George W. Bush signed it into law on December 21.
Simbi Veke Mubako, Zimbabwe's ambassador, and Cynthia McKinney accused supporters of the bill of anti-black racism.
Statement of Policy
"It is the policy of the United States to support the people of Zimbabwe in their struggle to effect peaceful, democratic change, achieve broad-based and equitable economic growth, and restore the rule of law."
Sanctions
The sanctions nature of the Zimbabwe Democracy and Economic Recovery Act of 2001 are mentioned below:
It is the sense of Congress that the President should begin immediate consultation with the governments of European Union member states, Canada, and other appropriate foreign countries on ways in which to--
(1) identify and share information regarding individuals responsible for the deliberate breakdown of the rule of law, politically motivated violence, and intimidation in Zimbabwe;
(2) identify assets of those individuals held outside Zimbabwe;
(3) implement travel and economic sanctions against those individuals and their associates and families; and
(4) provide for the eventual removal or amendment of those sanctions
(c) MULTILATERAL FINANCING RESTRICTION- Until the President makes the certification described in subsection (d), and except as may be required to meet basic human needs or for good governance, the Secretary of the Treasury shall instruct the United States executive director to each international financial institution to oppose and vote against--
(1) any extension by the respective institution of any loan, credit, or guarantee to the Government of Zimbabwe; or
(2) any cancellation or reduction of indebtedness owed by the Government of Zimbabwe to the United States or any international financial institution.
The institutions directly affected by this policy are listed in Sec 3, titled Definitions:
SEC. 3. DEFINITIONS.
In this Act:
(1) INTERNATIONAL FINANCIAL INSTITUTIONS- The term `international financial institutions' means the multilateral development banks and the International Monetary Fund.
(2) MULTILATERAL DEVELOPMENT BANKS- The term `multilateral development banks' means the
International Bank for Reconstruction and Development, the International Development Association, the
International Finance Corporation, the
Inter-American Development Bank, the
Asian Development Bank, the
Inter-American Investment Corporation, the
African Development Bank, the
African Development Fund, the
European Bank for Reconstruction and Development, and the
Multilateral Investment Guaranty Agency
Especially the last institution, the Multilateral Investment Guarantee Agency is important in underwriting loans between governments.
Addressing youths at a Harare hotel after a meeting to launch the Midlands Youth Dialogue Forum was disrupted by suspected Zanu-PF supporters last week, Ray said Zidera had not yet been formally applied on Zimbabwe, contrary to claims by Zanu-PF politicians.
"The law was made to ensure that American companies and the government would vote against any applications for grants from either the World Bank or International Monetary Fund (IMF).
We have not used the law since Zimbabwe has defaulted on its debts with the two institutions and is therefore not eligible to any grants.
Anyone who says Zidera and sanctions imposed by the US are hurting Zimbabwe will be lying or are just misinformed," Ray said.
Snippets of the Act Click >>>> here for the Act
The Zimbabwe Democracy and Economic Recovery Act (S. 494) is an act passed by the United States Congress sanctioned to provide for a transition to democracy and to promote economic recovery in Zimbabwe.
Senators Bill Frist (R-Tennessee) and Russ Feingold (D-Wisconsin) introduced the bill on March 8, 2001. Senators Frist, Jesse Helms (R-North Carolina), Hillary Rodham Clinton (D-New York), and Joseph Biden (D-Delaware) sponsored the bill. The Senate passed the bill on August 1 and the House passed the bill on December 4. President George W. Bush signed it into law on December 21.
Statement of Policy
"It is the policy of the United States to support the people of Zimbabwe in their struggle to effect peaceful, democratic change, achieve broad-based and equitable economic growth, and restore the rule of law."
Sanctions
The sanctions nature of the Zimbabwe Democracy and Economic Recovery Act of 2001 are mentioned below:
It is the sense of Congress that the President should begin immediate consultation with the governments of European Union member states, Canada, and other appropriate foreign countries on ways in which to--
(1) identify and share information regarding individuals responsible for the deliberate breakdown of the rule of law, politically motivated violence, and intimidation in Zimbabwe;
(2) identify assets of those individuals held outside Zimbabwe;
(3) implement travel and economic sanctions against those individuals and their associates and families; and
(4) provide for the eventual removal or amendment of those sanctions
(c) MULTILATERAL FINANCING RESTRICTION- Until the President makes the certification described in subsection (d), and except as may be required to meet basic human needs or for good governance, the Secretary of the Treasury shall instruct the United States executive director to each international financial institution to oppose and vote against--
(1) any extension by the respective institution of any loan, credit, or guarantee to the Government of Zimbabwe; or
(2) any cancellation or reduction of indebtedness owed by the Government of Zimbabwe to the United States or any international financial institution.
The institutions directly affected by this policy are listed in Sec 3, titled Definitions:
SEC. 3. DEFINITIONS.
In this Act:
(1) INTERNATIONAL FINANCIAL INSTITUTIONS- The term `international financial institutions' means the multilateral development banks and the International Monetary Fund.
(2) MULTILATERAL DEVELOPMENT BANKS- The term `multilateral development banks' means the
International Bank for Reconstruction and Development, the International Development Association, the
International Finance Corporation, the
Inter-American Development Bank, the
Asian Development Bank, the
Inter-American Investment Corporation, the
African Development Bank, the
African Development Fund, the
European Bank for Reconstruction and Development, and the
Multilateral Investment Guaranty Agency
Especially the last institution, the Multilateral Investment Guarantee Agency is important in underwriting loans between governments.
Source - Byo24News
