Aug. 23, 2019
Zimbabwe is pursuing a less costly multi-million dollar bailout package from the Group of Seven (G7) wealthy nations to avoid contracting choking and expensive commercial debt for the funding it needs to clear arrears with major global lenders, according to Finance and Economic Development Minister Professor Mthuli Ncube.The Southern African country has for over nearly two decades failed to unlock fresh and cheaper external lines of credit due to lingering debt to the global lenders and Minister Ncube contends the G7 hold the key to Harare’s debt freedom.
Sept. 12, 2019
Finance and Economic Development Minister Professor Mthuli Ncube has appointed a nine-member monetary policy committee (MPC) of the Reserve Bank of Zimbabwe (RBZ), which is chaired by central bank governor Dr John Mangudya. The appointment of the committee comes at a time Zimbabwe is deep in the process of currency and economic reforms meant to restore key fundamentals in order to stabilise the economy to place it on a firm path to sustainable growth.
May 31, 2019
Zimbabwe will not borrow externally and will cut reliance on the central bank to finance deficits during an IMF staff-monitored programme in a bid to set a track record of fiscal discipline that could earn it future funding, the IMF said. The owes $8.8 billion to foreign lenders, $2.6 billion of that in arrears to the World Bank, the African Development Bank and the European Investment Bank. It has not accessed financing from international institutions since defaulting on its debt in 1999. It is also suffering from a dollar crunch, rising inflation and public anger over shortages - all issues that have piled pressure on President Emmerson Mnangagwa who has promised to revive the economy after the fall of Robert Mugabe. His government agreed to have its economic and political reforms monitored by the IMF from May 15 to March 15 2020, to try to convince foreign donors to restructure and forgive its debt. In a report released on Friday, the IMF said Harare authorities pledged to only borrow RTGS$400 million from the central bank in 2019, down from RTGS$3 billion in 2018. The treasury will also cut the government’s salary bill to 67 percent of the budget, down from 79 percent last year and slash the budget deficit to 4% of GDP, in line with earlier projections, the IMF added.
Nov. 28, 2018
Oct. 26, 2018
The Zimbabwean Treasury proposed to drastically reduce the national budget deficit in 2019, state media reported Friday. The reduction will be made through interventions such as limiting government borrowing from the central bank, tightening of Treasury Bills issuances and cutting travel and wage bills.