Zimbabwe Eyes IMF Reforms in Bold Bid to Clear $12.7 Billion Debt – Africa.com
President Emmerson Mnangagwa on Monday chaired a meeting of creditors and financial executives to discuss his government’s plan to tackle Zimbabwe’s $12.7 billion foreign debt, which accounts for 81% of the country’s GDP. He revealed that negotiations were ongoing with the International Monetary Fund on the Staff Monitoring Program (SMP), a prerequisite for much-needed policy reforms. The event was also attended by African Development Bank (AfDB) President Akinwumi Adesina, who pledged financial support to help mitigate any potential adverse effects of the reforms. He said the African Development Bank has a special fund that provides funds to help settle Zimbabwe’s arrears. Analysts stress that clearing these arrears is crucial to lower borrowing costs and attract investment. Harare’s unsustainable debt situation, coupled with decades of financial crisis, remains a significant obstacle. However, through strategic reforms, the country seeks to restore economic credibility and resolve its enduring economic challenges.
source: Reuters
