ZIMBABWE’s foreign payment arrears have climbed to at least $350-million dollars, raising the prospect of a default on its external debt and further fuel shortages, the Financial Times reported on Wednesday. It said the deficit relates to payments for goods already dispatched to Zimbabwe and for orders not yet sent. Citing bankers it added that the arrears problem is compounding an already critical economic situation that could see Zimbabwe default on foreign debt of $4,5-billion. The newspaper said that a stand-off between tobacco growers and the government will only deepen the crisis, as farmers hold back on leaf supplies in protest at low prices, threatening to depress state earnings.
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