Zim needs debt strategy: UNDP

Zimbabwe needs to implement a debt clearance strategy as well as normalise its relationship with international partners if the country aims to address the economic challenges it currently faces, a spokesperson from the United Nations Development Programme said.

Economist Hazel Nyamanhindi made the statement during a Millennium Development Programme meeting with stakeholders here.

The country was suspended from borrowing from international financial institutions such as International Monetary Fund and World Bank due to non payment of its debts.

Nyamamhindi said Zimbabwe had faced some serious economic challenges that have eroded its capacity to remain competitive in regional and international markets.

"The country has very limited access to international finance for development which has led to a reliance on depleted internal resources and humanitarian aid from EU countries and USA," she said.

Nyamanhindi said currently its only international reserves consisted of the IMF Special Drawing Rights from Global Finance Facility amounting to US$510 million.

She went on to say the country`s external debt obligation grew by a significant 30.3 per cent between 2005 and 2010.

"This is a stark contrast to the deceleration of -1.63% in the previous five year period 1999-2004 which can be explained by the accelerated economic decline that occurred during that period," she said.

Post published in: Business

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