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RBZ Deputy Governor Dr Kupukile Mlambo (centre) cuts the ribbon during the official opening of the Standard Chartered bank, Bulawayo branch last Friday night

Bianca Mlilo, Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) is structuring a financial package to clear the country’s foreign debt as Government intensifies its re-engagement efforts with the international community, an official said.

Zimbabwe owes millions of dollars to external lenders and clearing these arrears is crucial in taming country risk factor and opening new avenues for fresh lines of credit.

Normalising relations with the international community is at the core of the Government’s strategy to restore economic ties and attract increased investment in different sectors of the economy.

Speaking at the official opening of the renovated Bulawayo Fife Street Standard Chartered Bank on Friday, RBZ Deputy Governor Dr Kupukile Mlambo said Zimbabwe was poised for improved economic growth this year.

“Significant strides are being made regarding the re-engagement process. We have already cleared arrears to the IMF and are making efforts to address the remaining arrears with other multilateral institutions,” Dr Mlambo.

“We have also made significant progress in structuring financial packages to resolve the country’s arrears to the other multilateral creditors, namely the World Bank (WB) and the African Development Bank (AfDB).

“As a result of these and other actions by Government, and the good rains God has blessed us with, we project a modest economic growth rebound of 1,7 percent in 2017, up from 0,6 percent in 2016.”

Last October Zimbabwe cleared its overdue debt to the IMF after paying $108 million to the global finance body. Zimbabwe had been in continuous arrears since 2001.

According to the debt clearance plan presented in Lima, Peru in 2015, the resolution of external debt arrears will be achieved through the use of domestic resources to clear arrears to the IMF; use of a bridge loan to clear AfDB Group debt arrears and use of a medium-to-long term facility from a friendly country to clear arrears to the World Bank.

Zimbabwe owes the World Bank $1,8 billion and AfDB about $600 million.

Asked to specify when exactly the remaining debt will be paid, Dr Mlambo said: “We’ll only know that one when the governor (Dr John Mangudya) goes for the preliminary meetings with the two institutions, which is when he’ll be given the timetables.”

@BiancaMlilo