Zimbabwe receives ‘strong’ endorsement of arrears clearance strategy in Lima


Finance Minister Patrick Chinamasa

ZIMBABWE received strong endorsement among its international creditors to support its strategy to clear the arrears to the three preferred creditors; the International Monetary Fund, World Bank and the African Development Bank.

This follows a meeting held in Lima Peru yesterday on the sidelines of the IMF/World Bank annual meetings.

The meeting was convened by the AfDB, World Bank and the IMF to discuss Zimbabwe’s strategy for clearing outstanding arrears to the three institutions.

Prior to the Lima meeting, a Government delegation led by RBZ Governor Dr John Mangudya visited some European capitals last month to meet with some of the country’s creditors in Rome, Brussels, Berlin and Paris.

In a statement, Finance minister Patrick Chinamasa said the Lima meeting was ‘well attended’ by representatives of all multilateral, as well as most bilateral creditors.

“The strategy that was presented by Government entails clearing Zimbabwe’s external payment arrears with the IFIs through a combination of using the country’s own resources, arrangement of bridge finance with regional and international banks and the usage of bilateral loan facilities,” Chinamasa said.

The strategy involves the following:

  • Clearing the arrears to the three multinational institutions namely the IMF, ($110 million), the World Bank ($1.15 billion) and the AfDB ($601 million) by the end of April 2016
  • Development of a new comprehensive Country Financing Programme supported by the three institution that attracts long term financing to promote growth and debt sustainability and
  • Engagement of the European Investment Bank, the Paris Club and non-Paris Club bilateral creditors for debt resolution on the strength of performance under the Financing Programme.

Chinamasa said the strategy is anchored on the ‘strong’ 10 point plan enunciated by President Mugabe in August.

“There was strong endorsement among creditors to support the strategy. The discussion that transpired in Lima was quite healthy and productive in supporting Zimbabwe’s efforts towards rapid economic development and transformation.” -FinX