Zimbabwe govt lacks capacity to assume debts

Zimbabwe does not have the capacity to keep assuming debts caused by the misappropriation of State funds by individuals, a local pressure group has said.

Patricia Kasiyamhuru, the Zimbabwe Coalition on Debt Development executive Director said that government must clarify its reasons to assume a $300 million debt from the national carrier, AirZim at a time when Treasury is failing to meet its obligations.

Kasiyamhuru said that move on its own, for the development of the airline and bringing an investor, is not a bad idea.

This comes as Transport and Infrastructural Development minister Obert Mpofu last week said government was ready to warehouse AirZim's $298 million debt to lure investment to the struggling parastatal.