Zim Get 1Billion Loan To Pay Back IMF Arrears
Published: 2016 July 08 01:10:58 (32412 Views)
Zimbabwe is close to finalising a nearly $1 billion loan from the African Export-Import Bank (Afreximbank) to clear its debt arrears with multilateral institutions after a proposed funding deal with Algeria fell through, officials have said.
Harare is expecting its first loan since 1999 from the IMF later by December this year, after meeting targets under a 15-month IMF staff monitored programme, an informal agreement between a government and IMF staff to monitor implementation of economic reforms.
Zimbabwe’s foreign debt stands at $10 billion, of which $1,8 billion is arrears. Countries are required to clear all arrears with multinational lenders before engaging in talks with creditors.
In a story quoting the governor of Zimbabwe’s central bank, John Mangudya, the Financial Times reported on Wednesday that the Afreximbank was arranging a seven-year loan of $986 million so the country could pay back arrears to the World Bank.
The new agreement appears to replace the proposed lending from Algeria, which was proposed in April this year but whose ability to loan has been hit by falling oil prices.
“What we can tell you is that, obviously, if things move well, we are expecting balance of payments support from the IMF,” Mangudya told the FT.
Mangudya said Zimbabwe expects to have paid back its arrears in time for the board meetings of the IMF and AfDB in September.
Zimbabwe also hopes to clear its debt of $110 million to the IMF against a special drawing rights (SDRs) allocation of around $130 million from the Fund, finance minister Patrick Chinamasa said at a briefing at London-based think-tank Chatham House earlier this week.
Chinamasa and Mangudya’s efforts to address the deepening economic malaise come against increasing public unrest at home.
- The Source
Harare is expecting its first loan since 1999 from the IMF later by December this year, after meeting targets under a 15-month IMF staff monitored programme, an informal agreement between a government and IMF staff to monitor implementation of economic reforms.
Zimbabwe’s foreign debt stands at $10 billion, of which $1,8 billion is arrears. Countries are required to clear all arrears with multinational lenders before engaging in talks with creditors.
In a story quoting the governor of Zimbabwe’s central bank, John Mangudya, the Financial Times reported on Wednesday that the Afreximbank was arranging a seven-year loan of $986 million so the country could pay back arrears to the World Bank.
The new agreement appears to replace the proposed lending from Algeria, which was proposed in April this year but whose ability to loan has been hit by falling oil prices.
“What we can tell you is that, obviously, if things move well, we are expecting balance of payments support from the IMF,” Mangudya told the FT.
Mangudya said Zimbabwe expects to have paid back its arrears in time for the board meetings of the IMF and AfDB in September.
Zimbabwe also hopes to clear its debt of $110 million to the IMF against a special drawing rights (SDRs) allocation of around $130 million from the Fund, finance minister Patrick Chinamasa said at a briefing at London-based think-tank Chatham House earlier this week.
Chinamasa and Mangudya’s efforts to address the deepening economic malaise come against increasing public unrest at home.
- The Source
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Anonymous user
2016 July 09 21:43:50
I thought zimbabwenz were smart ppo but what is thi minister chinamhata doing mbiva crooks.robbing john to pay peter shame
Anonymous user
2016 July 09 09:31:26
Mari yabiwa nehurumende iyi is enough to pay back those arrears. Madinga evanhu
Anonymous user
2016 July 09 06:04:39
I don't understand to borrow, so that you pay another credit. Chin opera here chikwereti ichi? Perennial beggars.
Anonymous user
2016 July 08 11:43:17
So basically funding this government to terrorize its citizens, to buy new cars and unending trips?
Anonymous user
2016 July 08 11:02:51
Why don't they say we will lend you this money only when Mugabe stands down and the government changes?!?! Anyone in their right mind is beyond crazy to lend Zimbabwe money if things don't change because this will just be looted and not go to where it's destined to!!!
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