Zimbabwe’s over 10bn external debt major economic impediment

Zimbabwe’s foreign debt arrears have remained a major impediment to the country’s economy, making up more than US$6.6 billion.

This represents a 62 percentage of the total foreign debt.

While, the Public Debt Management Office says the country’s total external public debt stood at US$10.5bn as at December 2020, a 4.1% rise, as reported by Newshawks, this does not include the US$3.5bn owed to white farmers and US$2.9bn RBZ legacy debt.

The publication reports that only US$20.39m was paid in servicing debts in 2020.

Apparently, almost all Zimbabwe’s external debt is now in arrears: World Bank Group;US$1.3bn (88%), African Development Bank; US$699m (95%) and European Investment Bank, US$339m (95%).

The extent of national debts to multilateral financial institutions can make or break a nation, and Zimbabwe’s over USD 10 billion debt is not different.

Zimbabwe is presently ineligible to get loans from international financial institutions (IFIs) due to its high external debt.

-Zwnews