Maravi

(NEWZIMBABWE) Zimbabwe launches debt clearance strategy

COMMENT - It is already clear that Biti and the MDC want to hand over Zimbabwe's diamond reserves to 'clear their debt' with the IMF. This is standard HIPC procedure.

Zimbabwe launches debt clearance strategy
22/03/2012 00:00:00
by NewZiana

THE government has formulated a policy framework to guide the country in clearing its debts and arrears, says Finance Minister Tendai Biti.

Launching the Zimbabwe Accelerated Arrears Clearance, Debt and Development Strategy (ZAADDS) on Wednesday, Biti said the country should resolve the challenge of debts and arrears to be able to move forward with its economic development agenda.

Strategies spelt out in the policy document include engaging the international community and creditors to remove sanctions as well as establishing a Debt Management Office in the Ministry of Finance.

Zimbabwe's debt and arrears, which stand at 118 per cent of its gross domestic product (GDP), have been cited as a major developmental challenge.

Biti said: "Resolution of the debt issue will unlock fresh financing for critical infrastructure reconstruction projects and economic recovery programmes that will significantly improve the quality of life of the ordinary Zimbabweans.

"In the absence of resolution of Zimbabwe's external debt question, it will remain difficult for us to realize the MDGs (Millennium Development Goals) and for the ordinary Zimbabwean to participate fully in the country's economic transformation."

Biti said it was important for development partners and international financial institutions to note and appreciate the progress which the country's inclusive government had made to resuscitate the economy.

"Judge us by the track record of what we have done. Our figures have spoken for us. GDP growth rates have been above 7.0 per cent after 2009 with industrial capacity utilization rising from between five to ten per cent to 40 to 60 per cent," he added.

The Zimbabwean economy has been on a recovery path since 2009 when the country adopted multiple foreign currencies and the inclusive government was formed.

Labels: DEBT, HIPC, IMF, TENDAI BITI

posted by MrK @ 7:57 PM