. . . as Zim’s debt clearance moves bear fruit

INTERCESSIONS on Zimbabwe’s arrears clearance and debt resolution plan being spearheaded by two eminent African sons have started bearing fruits as goodwill and support within the ranks of creditor nations is beginning to build, President Mnangagwa has said.

This come as the Head of State and Government is set to leave today for Egypt to attend the African Development Bank (AfDB) forum where he will engage with representatives of creditor nations and organisations as the country escalate efforts to settle its debts and arrears.

Writing in his weekly column in The Sunday Mail yesterday, President Mnangagwa said there was unanimity in his administration that the issue of the country’s debt must be dealt with urgently.

“Tomorrow (today) I leave for Sharm el-Sheikh, Egypt to attend an African Development Bank forum at which Zimbabwe’s arrears and clearance and debt resolution issues will be discussed. As is now known, Zimbabwe’s principal debt has not been the real challenge to our economy. What has been are the interest rates levied on unsettled arrears, thus bloating our debt more than threefold. The arrears have thus become the new debt. Government is urgently looking at ways to bring this runaway arrears situation under tow, and hence the Sharm el-Sheikh meeting, which has been preceded by several high-level brainstorming meetings held here at home,” he said.

“I am most grateful to the President of the African Development Bank, Dr Akinwumi Adesina, and former President of Mozambique, His Excellency Joachim Chissano, for readily agreeing to play the onerous role of Arrears Clearance and Debt Resolution Champions for our country, Zimbabwe. Their intercessions are already bearing fruit, and we begin to see windows gradually opening, and goodwill and support forming and growing within the ranks of our creditor nations and development partners. No doubt, there is consensus in the country that the question of Zimbabwe’s Arrears Clearance and Debt Resolution must be tackled and resolved urgently, if the pace of our growth and development is to be accelerated.”

He said Government had been pursuing prudent economic measures to avoid budget overruns.

“Government has pursued prudent fiscal and monetary policy to guarantee macro-economic stability. Since the advent of the Second Republic, Government budget has run on a cash basis, thus avoiding un- budgeted overruns,” he said.

“This has never been so before, including under the much-vaunted Government of National Unity, GNU. Because of this fiscal discipline, often pursued even at the expense of social delivery, space has since been created for businesses to grow in a stable environment where disequilibria are minimised. Indeed, this has been the case until now.”

The AfDB, has already set aside a special day for Zimbabwe at the summit, during which the country’s affairs, principally the resolution of national debt, will come under the spotlight.

In the past there has been series of a high-level meeting on Zimbabwe’s arrears clearance and debt resolution, which is being held in the country, and the Government believe the meetings will lay the groundwork for the envisaged engagements in Egypt.

This year’s AfDB meetings will run from May 22 to 26

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