At a press conference held by the IMF on Saturday, Zimbabwe’s finance minister Mthuli Ncube stated that the country is in discussions with the World Bank and International Monetary Fund on how to pay off its debts to these organizations.
He claimed that Zimbabwe had started issuing bonds with maturities ranging from two to twenty years in order to pay its debts to creditors and was investigating how to trade them. It was also considering issuing bonds to eventually recompense former white farmers.
Zimbabwe is working with the World Bank and IMF to pay off IFI debt, according to the finance minister
At a press conference held by the IMF on Saturday, Zimbabwe’s finance minister Mthuli Ncube stated that the country is in discussions with the World Bank and International Monetary Fund on how to pay off its debts to these organizations.
He claimed that Zimbabwe had started issuing bonds with maturities ranging from two to twenty years in order to pay its debts to creditors and was investigating how to trade them. It was also considering issuing bonds to eventually recompense former white farmers.
Over $10 billion in external debt, the majority of it in arrears, is owed by Zimbabwe, which has experienced periods of hyperinflation over the past 15 years. As a result, it hasn’t gotten assistance from financial institutions like the IMF and World Bank in more than 20 years.
At a press conference held by the IMF on Saturday, Zimbabwe’s finance minister Mthuli Ncube stated that the country is in discussions with the World Bank and International Monetary Fund on how to pay off its debts to these organizations.
In December, he added, IMF employees will visit Zimbabwe, and in the first and second quarters of 2023, they would discuss a staff-monitored program.
By doing so, he claimed, the company would be able to obtain “resources from a sponsor who will support us with bridging money in order to settle the arrears” with international lenders and then restructure its debt with bilateral Paris Club creditors.
Zimbabwe’s inflation decreased in September from 285% and 12.5% in August to 280.4% annually (ZWCPIY=ECI) and 3.5% month-to-month (ZWCPIM=ECI).
Ncube stated that after three to four months of monthly inflation at 3%, the nation will consider lowering interest rates, though he would prefer 1%.
Zimbabwe’s central bank raised its key interest rate from 80% to 200% in June, and kept it there in September.
