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AfDB Accepts Mnangagwa's Request On Zimbabwe's Foreign Debt

AfDB Accepts Mnangagwa's Request On Zimbabwe's Foreign Debt

The President of the African Development Bank (AfDB), Akinwumi Adesina, said that he has accepted President Emmerson Mnangagwa’s request for the bank to lead Zimbabwe’s debt repayment strategy.

Adesina announced the development at the ongoing AfDB annual general meeting (AGM) in Accra, Ghana.

Zimbabwe is seeking to expunge its unsustainable sovereign debt, now at US$19 billion.

The country cannot access affordable long term financing from both multilateral and bilateral financiers, which has hindered efforts to turn around the economy. Said Adesina:

I have written to the President of Zimbabwe that I humbly accept what you requested me to champion as the vice president said the arrears clearance and I know that with the understanding and the support of our partners we will get there soon.

… So we are committed as that bank to that. We will walk with our partners. We will walk with the World Bank.

We will walk with the IMF, we will walk with all the bilateral partners. My vice president [Yacin Fal] just went there.

Finance and Economic Development Minister Mthuli Ncube said Zimbabwe has begun making token payments to all the foreign financiers it owes among them the Paris Club, which has 17 members, the World Bank and the African Development Bank (AfDB).

Ncube said this last month on the sidelines of World Bank annual meetings that he attended in Washington DC, USA. He said:

We are now making token payments to the 17 members of the Paris Club, this means that we are now servicing all our creditors, and payments are being made quarterly for the past 9 months.

Zimbabwe is presently ineligible to get loans from the (International Financial Institutions) IFIs due to its external debt.

More: The Guardian

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Maparamuro 1 month ago

Paying the debt leaves the country penniless and unable to do any development, failure to pay the debt means country is in perpetual debt, country can only borrow more to pay the debt and not for development.

Machiavelli 1 month ago

And concerning unity what we need is unity of purpose. No use asking workers to tighten their belts when the top man is getting US$40,000 per month, and he squanders US$5million dollars each to trips to Scotland, Davos, Birmingham hiring very expensive luxurious aircraft.

Charity begins at home

Machiavelli 1 month ago

With due respect @Blue 💙, I have never said what you are attributing to me. Check all my interventions. I don't generalise. I respond to specifics and I do not theorise.

Now that you and @Maparamuro have raised the issue, let me hasten to say that International acceptability is the cornerstone. In a separate commentary today I raised the issue of relationships with WB, IMF and The Paris Club. We need to publicly declare our insolvency to get debt relief or debt cancellations. In addition we need to play ball with lenders, and that means following their terms to the letter. We are not islands and we are not rich. We have to swallow the bitter pill of loan conditions. And that's only for starters.

Time and time again we are lambasted for civil rights abuses, disputed elections since 1985. Our mantra has always been "We will never be a colony again", and curiously we have been t****ughly colonised by the Chinese who by the way only harvest raw materials an never beneficiation.

Blue 💙 1 month ago

Zim is in a tricky situation yet some of us like Asalif and Machiavelli think it's easy navigating out of these weeds. Aewa, zvinotoda unity kwete alien behavior spliced with unscrupulousness

munzaa 1 month ago

ko game ye madrid ne liverpool irikutanga kuvai

NF 1 month ago

Na9 mudhara

Machiavelli (The Original Don) 1 month ago

I challenge the Bogus Machiavelli to argue his case. Here and Now

Machiavelli 1 month ago

I wish Adesina the best of luck in his new job. Needless to say his predecessor Dr. Michael Gondwe tried to shore uthe Mugabe regime with minimal success.

Adesina rightly points out that AfDB needs to work with The World Bank, The IMF, and The Paris Club to get Zimbabwe's Debt forgiven. Therein lies the problem.

First Zimbabwe was given the option a couple of decades ago to declare herself insolvent, thereby qualifying herself for debt forgiveness. Mugabe refused point blank to be declared insolvent. If this current regime has the balls to accept being a financial leper, it will be a good starting point.

Secondly, WB, IMF and The Paris Club are dominated by the USA, UK and EU, whose terms to Zimbabwe are very clear. USA controls about 90% of voting rights in both WB and IMF. With ZIDERA in place, I don't see Adesina winning.

ZIDERA is very clear - attend to human rights abuses, transparent elections, etc or you don't get USA support in WB and IMF. Period.

Quo vadis Monseur Adesina?
(Quo vadis is Latin for Where To?)

Blue 💙 1 month ago

Yet the question remains, does politics affect the ability of Zimbabwe to get funds or loans? Are you telling me we haven't got a loan since 2000? That's when the supposed Human Rights abuses began perhaps during Gukurahundi times?

Machiavelli 1 month ago

The US$930 million Special Drawing Rights you refer to @Blue 💙 are an interesting phenomenon. I can see you don't even know what those funds were. Now let me enlighten you.

We are members of the IMF and as such at some time in the remote past, we contributed to the capital of the IMF (let's call it shareholding). We got dividends in the form of SDRs in question. USA got trillions in SDRs because they contributed a lot more (about 90%) to the working capita of the IMF.

We haven't received any loans from WB and IMF for years because we have failed to repay our loans and we are not credit worthy.

Blue 💙 1 month ago

Politics nema loan hasvipindirane. That's why Zim gets loans and funds even though you claim human Rights abuses. Imari ngani dzatapihwa? Recently we got the approximate billion dollars. Don't peddle misinformation.

The Observer 1 month ago

Ko Mthulisi ngaachizvidzinga hake nekuti President vatsvaka mumwe kutingamira zvemari izvi unless ndaverenga zvisizvo.

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