23 January 2018
   
Cholera: Angry minister blasts city councils
Mzembi challenges arrest; quits politics
Mudzuri: Amnesty for MDC-T cop murder 3
Mnangagwa: Grace mentally unstable
ZESA gave Chivayo $7m, not $5m: Parly
Botswana cops release Mugabe cars
Grace's luxury cars damaged in accident
Chamisa dares military chief on elections
MORE NEWS
Govt reduces excise duty on fuel
Filthy 5-Star hotels: Economy blamed
MORE BUSINESS
‘Am I African’ explores Zim's race conflict
Gafa’s Epworth concert draws thousands
MORE SHOWBIZ
Billiat might still leave: Sundowns coach
Katsande: Chiefs show championship mentality
MORE SPORTS
Mnangagwa’s ‘New’ Zim merits support
Zhuwao: kleptocracy and EDiots in Davos
MORE OPINION
 
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift
MORE COLUMNISTS
 
 

World Bank says Zimbabwe may clear its $1, 7 bn debt next year

22/06/2017 00:00:00
by Bloomberg
 
 
RELATED STORIES
IMF team in Zim soon to assess the situation
Economy recovering, claims Mugabe
Zim clears IMF arrears, $108m paid on Thurs
First IMF loan in 20 yrs due in 2016, RBZ
Chinamasa: Zim needs 8pct annual growth in 10yrs
IMF team due in Harare next week
IMF jets in amid indigenisation thaw
Biti: IMF not treating Zimbabwe fairly
Police probe Biti over missing US$20m
Mugabe blasts West over World Bank

ZIMBABWE may be able to clear $1.7 billion of interest and penalties it owes international financial institutions next year and has made progress in re-engaging them, the World Bank’s country director said.

“The principle of arrears clearance has been agreed” by the World Bank and African Development Bank, Paul Noumba Um said in an interview Wednesday in Harare.

“I don’t think we will be able to have everything closed and settled by the calendar year, but 2018 might be the year we will probably see a better outcome,” he said.

As of October, Zimbabwe owed lenders including the International Monetary Fund, World Bank and AFDB about $9 billion, according to the Finance Ministry, and missed a $1.8 billion payment in June last year.

Last month, Finance Minister Patrick Chinamasa said the country had secured a syndicated loan put together by the African Export-Import Bank that will enable it to clear the $1.7 billion of arrears with the two lenders.

Re-engagement would mean Zimbabwe would be entitled to receive financial support from the World Bank again.

‘Painfully Slow’

While “the process has been painfully slow,” Zimbabwe remains committed to re-engagement, Chinamasa told reporters Wednesday.

He has been leading efforts to revive the country’s struggling economy and tap fresh financing from the IMF. The economy has halved in size over the past 16 years, and the population is struggling with a shortage of cash, with banks limiting customer withdrawals.

The nation abandoned its own currency in April 2009 as runaway inflation rendered it worthless, opting instead for a basket of currencies that includes the dollar, South Africa’s rand, the pound and Botswana’s pula.

Zimbabwe’s economy will probably expand 2.8 percent in 2017, the World Bank said. That compares with a previous forecast of 3.8 percent.



Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker