Business / Economy
Zim seeks re-engagement with IMF
24 Nov 2014 at 03:51hrs | Views
ZIMBABWE plans to host a second international debt resolution forum this month to resolve the country's over $9 billion total debt which has hamstrung the flow of lines of credit from multilateral financial institutions.
In a letter of intent to the International Monetary Fund's managing director Christine Largade, Zimbabwe said it required substantial amount of inflows of capital to help the economy to recover.
"As part of the Zimbabwe Agenda for Sustainable Socio Economic Transformation (ZimAsset), we also intend to accelerate our re-engagement on debt resolution with all our creditors, including the international financial institutions. We also plan to host a second International Debt Resolution Forum sometime in November 2014, with a view to building consensus on the process for resolving Zimbabwe's debt challenge," Zimbabwe said in a letter jointly signed by Finance minister Patrick Chinamasa and Reserve Bank of Zimbabwe governor John Mangudya.
Zimbabwe owes the World Bank, Paris Club, Africa Development Bank and other institutions money which it has been failing to repay due to economic challenges that the country has been facing.
In September, IMF head of mission to Zimbabwe Domenico Fanezzi said the Bretton Woods institution was seeking donor support for the rescheduling of Zimbabwe's debt as the country could not qualify for the Highly Indebted Poor Countries (HIPC) initiative.
"Zimbabwe cannot be on the HIPC status. You have to be very, very poor. Zimbabwe does not qualify for that. That's good you are not so poor. We cannot go to the market and sell the debt as IMF and the World Bank cannot do the same. What we can do is to find a debt rescheduling and the debt comprises of debt solutions and this is exactly what we are trying to do," Fanezzi said.
"We are trying to get the support from donors and the development partners to agree on that and to find a way which your debt could be rescheduled."
Zimbabwe requires lines of credit to help reboot the comatose economy.
In a letter of intent to the International Monetary Fund's managing director Christine Largade, Zimbabwe said it required substantial amount of inflows of capital to help the economy to recover.
"As part of the Zimbabwe Agenda for Sustainable Socio Economic Transformation (ZimAsset), we also intend to accelerate our re-engagement on debt resolution with all our creditors, including the international financial institutions. We also plan to host a second International Debt Resolution Forum sometime in November 2014, with a view to building consensus on the process for resolving Zimbabwe's debt challenge," Zimbabwe said in a letter jointly signed by Finance minister Patrick Chinamasa and Reserve Bank of Zimbabwe governor John Mangudya.
In September, IMF head of mission to Zimbabwe Domenico Fanezzi said the Bretton Woods institution was seeking donor support for the rescheduling of Zimbabwe's debt as the country could not qualify for the Highly Indebted Poor Countries (HIPC) initiative.
"Zimbabwe cannot be on the HIPC status. You have to be very, very poor. Zimbabwe does not qualify for that. That's good you are not so poor. We cannot go to the market and sell the debt as IMF and the World Bank cannot do the same. What we can do is to find a debt rescheduling and the debt comprises of debt solutions and this is exactly what we are trying to do," Fanezzi said.
"We are trying to get the support from donors and the development partners to agree on that and to find a way which your debt could be rescheduled."
Zimbabwe requires lines of credit to help reboot the comatose economy.
Source - NewsDay
