The African nation has been locked out of international loans due to defaults on payments
Zimbabwe will carry out negotiations with the US, UK, and EU to resolve the issue of its massive external debt, which has been preventing the country from accessing much-needed international loans for years, Bloomberg reported on Thursday.
The southern African country, which had more than $14 billion in external debt as of September 2022, has not been able to secure financing in international capital markets for more than two decades, due to its arrears to the World Bank and other major creditors.
Zimbabwe resumed “token” repayments in 2021 as it seeks to reset relations with lenders. After visiting the country in December, the International Monetary Fund (IMF) said Zimbabwe would need deep reforms and “a clear path” to restructuring its debt, including clearing the $6 billion in arrears, before it could receive more money from the IMF.
The African country wants access to the IMF staff-monitored program to help implement an arrears-clearance and debt-resolution plan overseen by African Development Bank President Akinwumi Adesina.
As Zimbabwe’s debt continues to weigh on the country’s development, authorities have pledged to “shortly conduct deeper and direct bilateral engagements with the capitals – Washington DC, London and Brussels,” Finance Minister Mthuli Ncube told the IMF and World Bank executive directors.
According to Bloomberg, the official is currently in Washington for the IMF and World Bank Spring meetings. Meanwhile, Adesina and former President of Mozambique Joaquim Chissano, who is taking part in the debt resolution process, will also visit some of the Western capitals for direct talks.
Earlier, Zimbabwean President Emmerson Mnangagwa said his government was committed to clearing the arrears in order to regain access to international loans. But given the ailing state of the country’s economy, analysts are skeptical that the cash-strapped government will be able to make rapid progress in repayments. Annual inflation in the country hit 229.8% in January.
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