AfDB Says it is Looking at Ways to Help Zimbabwe Reduce Debt

The African Development Bank is considering three ways it could help Zimbabwe clear its huge debts.  The bank also says it will settle on a rescue package in three months time, the bank’s chief economist said on Tuesday.  The International Monetary Fund in January approved a six-month extension of a monitoring program for Zimbabwe aimed at helping it to clear 10 billion dollars in external debts and give it access to much-needed new international credit.

“We have three or so options that we think Zimbabwe can pursue and get out of this debt quagmire,” Mthuli Ncube told a news conference on the sidelines of the AfDB annual meeting.  The bank’s deal to help Zimbabwe, which is emerging from a decade of economic decline and hyperinflation, will be disclosed in three months time, he said.  The bulk of Zimbabwe’s debt dates back more than a decade. The country is also suffering a severe liquidity crunch, since it lacks significant foreign direct investment and lines of credit.

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