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IMF debt relief snub: Mnangagwa to blame

by Moyo Roy
14 Apr 2020 at 14:34hrs | Views
MDC Alliance vice president and former Minister of Finance Tendai Biti said the International Monetary Fund snubbed Zimbabwe from the debt relief provided to 20 African countries because of President Emmerson Mnangagwa' failure to reform and stealing of elections.

On Tuesday, the IMF board approved immediate debt relief for 25 countries, 20 of them African nations but Zimbabwe was excluded because it cleared all its outstanding debts with IMF in 2019.
The International Monetary Fund, IMF in 2019 revealed that Zimbabwe has already cleared all its outstanding debts. Director of Communication with the International Monetary Fund Gerry Rice revealed this in a question posed to him about the reports of Zimbabwe's indebtedness to the Fund.

Despite the clearance of the arrears Zimbabwe still owes says $687 million to the African Development Bank, $1.4 billion to the World Bank, $322 million to the European investment bank.

"20 African countries obtain debt relief and Zimbabwe is conspicuously absent. The reason is political illegitimacy, fascism and disrespect of the rule of law. The reason is corruption and rent-seeking behavior, cartels and #SakundaRepublic. The reason is failure to reform and stealing elections," said Biti.
Countries that will receive debt service relief include Afghanistan, Benin, Burkina Faso, Central African Republic, Chad, Comoros, Congo, D.R., The Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mali, Mozambique, Nepal, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Solomon Islands, Tajikistan, Togo, and Yemen.

IMF Managing Director Kristalina Georgieva said Executive Board approved immediate debt service relief to 25 of the IMF's member countries under the IMF's revamped Catastrophe Containment and Relief Trust (CCRT) as part of the Fund's response to help address the impact of the COVID-19 pandemic.

"This provides grants to our poorest and most vulnerable members to cover their IMF debt obligations for an initial phase over the next six months and will help them channel more of their scarce financial resources towards vital emergency medical and other relief efforts," she said.

Source - Byo24News