THE World Bank will not extend direct financial assistance to Zimbabwe until the country clears arrears with the bank, it has been revealed. (Pictured: World Bank president Robert Zoellick)
In a statement,World Bank president Robert Zoellick said although they have noted the banks improved relations with the inclusive government and progress it has on the economic front, the country needed to clear its arrears with the bank to access financial assistance. Zimbabwe owes the World Bank about US$ 676 million. The World Bank will help them (Zimbabwe) manage technical issues and challenges of macro-economic nature and structural issues (of the economy).
funding will continue (from World Bank) through NGOs, but there still are some issues of governance and challenges with the central bank, the debt from the past, which we are going to have cleared first. The government is making the right progress, said Zoellick. Mr Zoellick said the World Bank would work with the African Development Bank to ensure that the country consolidates the positive economic gains achieved so far and that it remains on course to full economic recovery. The local economy has stabilized since the adoption of multi-currency system, which enabled local firms to resume meaningful production, product availability improved and the once menacing inflation fell to sub-zero levels.
However, Mr Zoellick said that the World Bank has commended the inclusive government for making significant progress towards fixing Zimbabwes macro-economic challenges. He further added that a better performing Zimbabwe was good for Southern Africa and the Bretton Woods institution would offer technical assistance to help economy recover.
Post published in: Economy