Zimbabwe has in place a comprehensive debt and arrears clearance roadmap with the Bretton Woods institutions that will allow for access to important lines of credit.
The failure by the old dispensation to honour their debt obligations has prevented the economy from accessing essential credit lines provided mainly by the World Bank, International Monetary Fund and the African Development Bank.
Zimbabwe owes US$610 million to AfDB, US$1.6 billion to the World Bank and US$212 million to the European Investment Bank, but the arrears clearance roadmap contained in the Transitional Stabilisation Programme (TSP) will gradually clear off the debts as part of the fiscal reforms and re-engagement processes being instituted by government.
The Minister of Finance and Economic Development Professor Mthuli Ncube emphasized the government’s commitment to reengage these key institutions whilst giving a lecture at the Zimbabwe National Defence University to members of the Zimbabwe Defence Forces and allied participants.
The World Bank’s international finance corporation role in the country is now only limited to an advisory and technical nature with the IMF’s staff monitoring programme guiding treasury to achieve its fiscal and monetary objectives.
The huge pile of external debt has plunged Zimbabwe’s credit rating to almost junk status, but significant strides in paying the IMF debt have been made, raising real chances of the re-opening of fresh lines of credit to both the private and public sector.