|Expedite new debt strategy, says Gono|
|Wednesday, 08 August 2012 00:00|
resolution strategy in a bid to unlock external financing for economic development. The plan called Zimbabwe Accelerated Arrears Clearance, Debt and Development Strategy seeks ways to retire the country’s debt overhang.
“The adoption of ZAADDS is a bold stride in the amicable resolution of the country’s debt burden,” said Dr Gono. “This notwithstanding there is need to expedite the implementation of ZAADDS to unlock credit lines critical for rejuvenation of the economy.”
Last month, World Bank country manager Mr Mungai Lenneiye hailed Zimbabwe’s new strategy to retire its foreign debt, hinting that the Bretton Woods institution might reconsider extending credit to Zimbabwe.
“We think in the new year (next year) the process of lending could begin.”
“The resolution of debt under ZAADDS, the adoption of an SMP and sustained macro-economic stability would allow offshore financiers to fund medium- to long-term projects, particularly to export sectors.
The new strategy is a combination of old debt relief mechanisms, injection of capital by development partners, leveraging of natural resources and the removal of illegal sanctions imposed by Western countries.
Unveiling the new debt plan in March, Minister Biti said Zimbabwe could not deal with infrastructural challenges without funding and assistance from international financial institutions and bilateral partners Zimbabwe’s huge debt liability is largely a result of the country’s economic instability over the decade to 2008, which constrained its capacity to repay.
Last year, the African Development Bank said the country’s debt overhang was a major stumbling block to Government’s efforts to attract foreign investment.