Biti said Zimbabwe would seek debt relief from the club through application of the Naples Terms. This will entail rescheduling new payments over a set period of time, normally three years, applying 67 percent reduction in payment obligations and rescheduling the balance over several years.Biti said given Zimbabwe’s economic problems and lack of capacity to service its debt, it would be important that due care be taken to prevent accumulation of new arrears of the future repayments arising from rescheduled payments.
“Already, Zimbabwe qualifies under the Naples Terms conditions as its per capita income if $340 is below the Naples Terms in per capita income threshold of $500,” he said. He also confirmed that Zimbabwe owes Non Paris Club creditors a total of $394 million, of which $179 million is in arrears.