Zimbabwe is in talks with the World Bank and International Monetary Fund regarding the way to remove its debts with international financial institutions. Finance Minister Mthuli Ncube gave the statement while attending an IMF press conference on Saturday.
The finance minister described how the process has already started with the government issuing bonds with maturities with the time period between two and 20 years. He also stated that the country is considering whether they can be traded along with issuing bonds to compensate white former farmers over time.
Zimbabwe is reeling with hyperinflation from the past 15 years owes $10 billion as external debt, majorly in arrears. The international organizations it is in talks with have not funded the debt-laden country for more than two years as a consequence of this.
“We have started making little payments to the World Bank, the African Development Bank, and the European Investment Bank”, according to Ncube. “In order to demonstrate that we wish to be a good debtor, we will make token payments to all 17 of the Paris Club creditors.”
“In December”, he added, “IMF employees will visit Zimbabwe, and in the first and second quarters of 2023, they will discuss a staff-monitored programme.”
Inflation in Zimbabwe fell in September to 280.4% annually and 3.5% month on month, from 285% and 12.5% in August.
