Zimbabwe has accumulated arrears of more than $127-million on its obligations to the International Monetary Fund (IMF) and the issue is likely to dominate discussions when an IMF team visits Harare this week.
Figures posted on the IMF website show that Zimbabwe has built up arrears amounting to 84,68 special drawing rights since clearing the initial arrears in March this year.
The current arrears translate to about $127,68-million by October 31.
Finance Minister Herbert Murerwa on Thursday revealed that arrears on the external debt stood at $2,2-billion on October 31 but did not disclose the creditors and how much was owed to each.
Presenting the 2007 national budget to Parliament, Murerwa said a combination of poor economic policies, corruption and sanctions had placed a great strain on the country’s ability to service its foreign debts.
The total foreign debt stock stood at $4,1-billion by October 31. The arrears include unpaid principal and interest on funds owed to multilateral financial institutions and other creditors.
“Zimbabwe remains committed to honouring its external obligations,” Murerwa assured the international community.
Zimbabwe’s failure to service its foreign debt forced the IMF to suspend Harare’s voting rights in the fund in 2003 as the international lender began moves to expel the Southern African country.
The country only got a reprieve in March this year when it cleared part of its arrears to the IMF.
The issue of outstanding debt is, however, expected to feature again when an IMF team visits Zimbabwe from December 4 to 16 for Article IV consultations with the Harare authorities.
The purpose of such Article IV visits is to monitor compliance of IMF members with the fund’s policy-reform programmes and the payment of debts. — ZimOnline