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'Zim to start talks to clear foreign debt in 2020' - Banks want money not more talks, this is catch 22

05 Sep 2019 at 13:38hrs | Views
"Zimbabwe plans to start talks in early 2020 on clearing arrears on its international debt, Finance Minister Mthuli Ncube said, as it seeks to rebuild confidence in an economy ravaged by high inflation and shortages of hard currency and basic goods," reported Reuters.

"Arrears on World Bank and African Development Bank loans total almost $2 billion, he said, and clearing that may be crucial to securing new funds to help lift the country out of crisis."

Early 2020! Why wait?

Minister Ncube should know that banks are not interested in "talks", with all the talking he has been doing the debts would have been paid by now. Banks want money; real money, US$ and not RTGS$ or the up coming Z$!

Finance Minister, Professor Mthuli Ncube, promised to sort out Zimbabwe's outstanding debt with the IMF, WB, etc. when he took office in October 2018, nearly a year ago. He was cocksure he would have this done and dusted within months! Now we know it was all hot air!

This is just a catch 22! Zimbabwe needs financial assistance to revive its economy but first it must pay its long outstanding debt. Right now, the country is bankrupt, stone broke, and cannot even pay one dollar even if its very existence depended on it – what am I saying, its existence depends on it!

Zimbabwe is a pariah state ruled by corrupt, incompetent, vote rigging and murderous thugs; people like Professor Mthuli Ncube were added in the mix to give the regime some modicum of professionalism but no one was fooled. As long as the country remains a pariah state there will be no meaningful economic recovery because no one likes to do business with thugs.

Zanu PF rigged last year's elections, the regime is illegitimate; this is the starting point for Zimbabwe to end its pariah state curse. Zanu PF must step down to allow the appointment of an interim administration that will be tasked to implement the democratic reforms leading to free, fair and credible elections and a legitimate government.

The IMF, WB, G7 and the whole international community will be willing to negotiate a way out of this economic and political mess for Zimbabwe but only with a legitimate government, not this illegitimate Zanu PF regime!


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