Vision 2030 might remain a pipe dream if the debt crisis is not resolved; Zimbabwe Coalition on Debt and Development (ZIMCODD) says.
The organisation also says that Zimbabwe’s debt crisis cannot be resolved through piecemeal strategies.
“ZIMCODD’s position is that the debt crisis in Zimbabwe will be resolved through a sustainable and inclusive debt management framework underpinned on comprehensive debt audit, cancellation of odious and illegitimate debt and debt sustainability plan.”
“It is, however, regrettable that the current framework is mainly concerned with spelling out the relevant stages and processes required for efficient and effective evaluation, monitoring and managing of future guaranteed and on-lent loans and is silent on the other pertinent issues like debt audit and debt settlement for the existing loans.”
Recommending to Zimbabwe, ZIMCODD says that all debt resolution strategies in the country must be informed by a comprehensive debt audit as this is important in determining legitimate and illegitimate debt and ascertaining the social and economic impact of debt.
“Zimbabwe should come up with a debt repayment plan targeting both domestic and external debt (multilateral and bilateral) in a systematic way,” the organisation says.
“ZIMCODD urges the Ministry of Finance and Economic Development and all public entities to respect the rules and procedures on state guaranteed and on lent loans in letter and spirit.”
“The Ministry of Finance and Economic Development and the entire government should guarantee the Public Debt Management Office’s independence by respecting its decisions and advice for effectiveness in managing state guaranteed and on lent loans .”
By June 2019 Zimbabwe’s external debt was estimated at US$8 billion of which $5.9 billion was accumulated in arrears according to the African Development Bank.
“There is need for the government, through the Ministry of Finance and Economic Development to ensure that all debt relief agreements and new loan arrangements are formulated in a transparent way,” ZIMCODD says.
