World Bank to renew credit lines to Zimbabwe

The International Monetary Fund (IMF) and the World Bank have pledged to renew credit lines to Zimbabwe after the approval of the country's debt repayment plan.

In a statement after the approval of the country's debt repayment plan in Lima, Peru, the Bretton Woods institutions said that they will continue to re-engage the government with a view of eventually renewing credit lines.

The financial institutions have been involved in discussions with the government  regarding the repayment of debt as part of efforts to release fresh funds to the economy.

However, following the endorsement of the country s debt repayment policy by the global financiers, the Bretton Woods institutions are confident of government's policy to re-engage the international community.

The Minister of Finance and Economic Development, Patrick Chinamasa  has also assured the international financiers at the IMF and World Bank meetings in Lima that the arrears clearance plan will be achieved by using the country's own resources, arrangement of bridge finance with regional and international banks and usage of bilateral loan facilities.

Zimbabwe is in need of long term financing  to sustain productive sectors of the economy that are facing difficulties to borrow at cheaper rates as the country battles to repay  external and internal debts of $8,4 billion.