Zimbabwe launches debt clearance strategy

ln a bid to deal with its debt arrears currently amounting to $9,1 billion which the country is struggling to clear, Zimbabwe's finance minister, Tendai Biti has today launched the Zimbabwe: Accelerated Arrears Clearance, Debt and Development Strategy (ZAADDS).

Tendai Biti
Tendai Biti

Biti presented the strategy to the media at the Euromoney Zimbabwe Investment conference which opened in Harare today.

According to Zimbabwe's President Robert Mugabe, in his preface, public debt is an important tool for economic development which can contribute significantly to the financing of infrastructure projects and social programmes.

He says his government has formulated the policy framework for its arrears clearance and debt management known as ZAADDS.

Prime Minister, Morgan Tsvangirai also says in the preamble that the launch of ZAADDS indicates the commitment of the inclusive government to resolve the country's debt overhang , which has stalled the rapid implementation of the country's economic development agenda.

According to Biti, Zimbabwe is currently facing an unsustainable external debt burden which is seriously undermining the country's economic recovery and development agenda.

As at end of December 2010, Zimbabwe's external debt was estimated at $6,9 billion about 103% of GDP of which almost $4,8 billion about 72% of GDP is in accumulated arrears.

Biti says inorder to strengthen debt management, a Zimbabwe Aid and Debt Management Office (ZADMO) was established in the finance ministry on December 2010 to assume the responsibility over debt management.

Post published in: Business

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