AfDB says looking at ways to help Zimbabwe cut debt
20 May 2014, 14:53
Kigali - The African Development Bank is considering three ways it could help Zimbabwe clear its huge debts and 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 programme for Zimbabwe aimed at helping it to clear $10 billion 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.