Zimbabwe seeks $1.1 billion to clear World Bank arrears

Government will secure a medium to long-term loan to clear its $1,1 billion arrears to the World Bank Group in the second phase of an arrears clearance programme with preferred creditors as it seeks to unlock fresh lines of credit.

Zimbabwe has an arrears clearance plan to repay by June 30 the $1,8 billion owed to three preferred creditors the World Bank, International Monetary Fund and the African Development Bank (AfDB).

The plan was approved by creditors on the sidelines of the IMF/World Bank annual meeting in Lima, Peru. Zimbabwe owes the International Bank of Reconstruction and Development (IBRD) $896 million.

A unit of the World Bank Group, IBRD provides loans and assistance to middle income countries.

It also owes the International Development Association (IDA) $218 million. IDA is a World Bank's unit which helps the world's poorest countries.