HARARE The Zimbabwe Coalition on Debt and Development (ZIMCODD) says it will use the global week of action against debt and international financial institutions commemorations this week to intensify calls for an audit of the countrys ballooning debt. Zimbabwe owes a staggering US$6.7 billion to multilateral institutions and various other international lenders with the debt said to be racking up US$300 million a year in interests.
But it is unclear what the funds borrowed by President Robert Mugabes pervious government were used for, with his Zanu (PF) party unwilling to have an independent audit of the debt, especially the portion of funds borrowed on the countrys behalf by central bank governor Gideon Gono.
ZIMCODD — which said it will also use the debt week commemorations to appeal for debt cancellation from creditors and to press for a review of borrowing and lending policies, said it has lined up public lecturers, community theatre and music concerts in Harare — Bulawayo and Mutare to highlight the negative impact of unsustainable public debt on communities.
The coalition has lined up a number of activities to take place in Harare, Bulawayo and Mutare which include public lectures, community theatre and live music themed on debt, ZIMCODD said. The coalitions objective is to use public participation to highlight the social and economic and economic effect of unsustainable public debts.
ZIMCODD will commemorate debt week from October 7-9. The debt week is international marked on October 11-17, with at least 297 organisations from about 60 countries using the weeklong commemorations to call for immediate cancellation of illegitimate debt.
Analysts say Zimbabwes mounting debt is a huge millstone that has helped increase the countrys credit risk profile while undermining investment and growth.
The International Monetary Fund (IMF) earlier this year said the debt was so huge it cannot be resolved even if the government adopted the right economic policies and increased mineral extraction to raise cash to repay the amount.
The Bretton Woods institution, which is among multilateral lenders owed money by Harare, said only debt relief could save Zimbabwe’s economy.
But the coalition administration is yet to agree on a course of action to resolve a debt crisis. Cabinet is expected to debate a possible new debt strategy although Finance Minister Tendai Biti insists that the government has developed a new hybrid programme to address burgeoning debt.
Post published in: Economy