Zimbabwe likely to access fresh debt in 2016

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Zimbabwe could begin receiving financial support from the IMF again as early as next year. The IMF says the country has come up with a sensible strategy to clear debt arrears owed to multi-lateral creditors.

In October 2014 Zimbabwe signed up to an IMF staff monitored programme under which it must implement a number of reforms including cutting back on labour expenses, which consume more than 80 percent of government revenue and strengthening its fragile banking sector. To this end it has ensured all banks meet the prescribed 25 million dollar minimum capital threshold and has sought to clean up toxic loans through a vehicle this buying up bad debt.

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