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Africa Moyo Deputy News Editor

Discussions involving Zimbabwe and international financial institutions and countries it owes money are ongoing as part of efforts to have the over US$8 billion external debt restructured, Finance and Economic Development Minister Professor Mthuli Ncube has said.

Prof Ncube told The Herald Finance & Business on Tuesday that an update on progress will be issued.

“Zimbabwe has submitted its own proposals for a debt restructuring process to those institutions and countries that it owes money (and) the discussions are ongoing . . . ” he said.

As at September 30 last year, Zimbabwe’s external debt stood at US$8 billion.

External arrears prevent the country from accessing fresh financing from global financial institutions and traditional bilateral and commercial
creditors.

As a sign of its commitment to the re-engagement process, Government resumed token payments to international financial institutions in April last year and will continue doing so this year.

President Mnangagwa announced a policy to re-engage all countries that Zimbabwe had strained relations with in the past two decades, as an indication that it was open for business.

The relations went sour mainly because of the land reform.

In line with the re-engagement drive, Zimbabwe has started talking to the United States, Britain, the Commonwealth, and global financial institutions, among others, to mend relations.

There were claims by some citizens on Tuesday that Zimbabwe had been denied financial support by the International Monetary Fund, which was extended to 25 other countries to fight Covid-19 because it owed the fund.

Prof Ncube said: “Zimbabwe does not owe money to the IMF as we paid off our loans.

“The support (from the IMF to 25 countries) was mainly for countries that owe the IMF and are basically receiving relief on payments to the IMF in order to support the Covid-19 response.”

On Monday, IMF managing director Ms Kristalina Georgieva said their executive board had approved immediate debt service relief under the IMF’s revamped Catastrophe Containment and Relief Trust as a 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 dealing with Covid-19, she said.

As Zimbabwe does not owe the IMF, it could not get such a grant as it was meant to service a debt.