HARARE (Reuters) &#8211; The World Bank and IMF have endorsed Zimbabwe’s road map to clear more than $2 billion in foreign arrears at a meeting in Indonesia on Wednesday, the finance minister said, adding that the lenders had also backed his two-year economic recovery plan.
President Emmerson Mnangagwa has promised to revive the struggling economy, pay foreign debts that the country has defaulted on since 1999 and restore ties with West after becoming a pariah under Robert Mugabe’s near four-decade rule.
Finance Minister Mthuli Ncube, who is attending the International Monetary Fund (IMF) and World Bank meetings in Bali, Indonesia, said in a statement his plans to clear the arrears to the World Bank, African Development Bank and European Investment Bank had been accepted.
“All the cooperating partners and creditors present uniformly expressed their support for Zimbabwe and its arrears clearance Road Map,” Ncube said.
The lenders and Western donors also urged Ncube to “judiciously” implement his two-year economic recovery plan announced last Friday.
Ncube’s plan will see cuts on spending and the government’s wage bill and privatisation of loss-making state-owned firms.
Zimbabwe, which adopted the U.S. dollar after hyperinflation left its own currency worthless in 2009, is gripped by acute shortages of cash dollars. Prices of basic goods and medicines have risen in the last few days.
Reporting by MacDonald Dzirutwe; Editing by James Macharia

World Bank, IMF support Zimbabwe’s plans to clear more than $2 billion in foreign arrears, what you need to know

MacDonald Dzirutwe | HARARE
Zimbabwe has met all conditions to clear arrears to the World Bank and African Development Bank, paving the way for possible future funding from the International Monetary Fund, its finance minister said on Thursday.
The southern African nation in October last year cleared its 15-year-old financial arrears with the IMF, in a major step towards its first loan programme with the Fund since 1999.
Finance Minister Patrick Chinamasa said in a statement that facilities negotiated by the Reserve Bank of Zimbabwe to repay the $1.75 billion arrears had been &#8220;scrutinised and scrutinised&#8221; by the World Bank and AfDB, who were satisfied.
&#8220;Clearance of debt arrears is expected to open the door to foreign finance inflows and possible debt treatment by the Paris Club and non-Paris Club Bilateral Creditors through an IMF financing programme,&#8221; Chinamasa said.
He did not give details on where cash-strapped Zimbabwe had obtained the money to clear the arrears.
President Robert Mugabe&#8217;s government is struggling with dwindling foreign exchange inflows and acute shortages of cash that meant that banks have been limiting withdrawals.
Without foreign funding, the government has relied on tax inflows to support its budget, 90 percent of which goes towards paying its civil service.
(Reporting by MacDonald Dzirutwe; Editing by Tom Heneghan)

Zimbabwe says has met all conditions to clear arrears to World Bank & AfDB

Zimbabwe has cleared its 15-year-old financial arrears with the International Monetary Fund, a first step towards a new IMF loan program for the drought-stricken, cash-starved country, the Fund said on Thursday.
Zimbabwe settled obligations of about $107.9 million by transferring part of its cash holdings at the IMF to the Fund&#8217;s Poverty Reduction and Growth Trust, IMF spokesman Gerry Rice said in a statement. Zimbabwe had been in continuous arrears since 2001, he added.
&#8220;Zimbabwe is now current on all its financial obligations to the IMF,&#8221; Rice said.
However, a new IMF loan program for Zimbabwe cannot be considered until the country clears more than $1 billion in World Bank arrears and another $600 billion-plus owed to the African Development Bank.
A spokesman for the World Bank could not immediately be reached for comment on Thursday night on the funds&#8217; status of Zimbabwe.
The next step towards an IMF loan would be consideration by the Fund&#8217;s executive board of a formal proposal to lift remaining remedial measures imposed on Zimbabwe because of the arrears.
&#8220;Access to IMF resources would first require the establishment of a credible plan to clear arrears with other IFIs and with bilateral creditors, in line with applicable Fund policies,&#8221; the IMF said in a statement. &#8220;It would also require implementing a strong reform agenda to restore economic stability and foster sustained and inclusive growth.&#8221;﻿

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World Bank, IMF support Zimbabwe’s plans to clear more than $2 billion in foreign arrears, what you need to know

Zimbabwe says has met all conditions to clear arrears to World Bank & AfDB

IMF says Zimbabwe clears $108 mln in arrears

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arrears

World Bank, IMF support Zimbabwe’s plans to clear more than $2 billion in foreign arrears, what you need to know

Zimbabwe says has met all conditions to clear arrears to World Bank & AfDB

IMF says Zimbabwe clears $108 mln in arrears

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