After 20 years of debt, Zimbabwe “repaid” creditor countries for the first time

In order to improve the national image, Zimbabwe recently paid its first arrears to creditor countries, which is also the first “repayment” after 20 years of debt.
Zimbabwe finance minister nkube Zimbabwe finance minister nkube
Agence France Presse reported that Zimbabwe’s finance minister nkube said earlier this month that the country had paid the first arrears to the “Paris Club” (an informal international organization with western developed countries as its main members, one of its main functions is to provide debt solutions for debtor countries). He said: “as a sovereign country, we should strive to repay our debts and be a credible lender.” the Zimbabwean government did not disclose the specific repayment amount, but said it was a “symbolic figure”.
However, Agence France Presse said it was extremely difficult for Zimbabwe to pay off all its arrears: the country’s total foreign debt of $11 billion was equivalent to 71% of the country’s GDP; Among them, $6.5 billion in debt has been overdue. Nkube also made a “hint” about this, saying that Zimbabwe needs “financiers” to help solve the country’s debt problem. It is understood that Zimbabwe’s domestic economic development has stagnated for a long time and inflation remains high. Guvania, an economist in the country, said that the government’s repayment was only a “gesture”, which was conducive to changing the negative impression of the country.

Post time: Sep-14-2021