Zim finally settles IMF debt

schumi

schumi

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Harare - Zimbabwe has finally paid off its 16-year debt to the International Monetary Fund (IMF) as part of its arrears clearance strategy with multilateral institutions.

According to a statement released by IMF director of communications Gerry Rice on Friday, Zimbabwe settled its financial obligations on Thursday.

“On October 20, 2016, Zimbabwe settled its overdue financial obligations to the Poverty Reduction and Growth Trust of the IMF. Zimbabwe had been in continuous arrears since 2001." The amount paid was about $107.9m.

“Zimbabwe is now current on all its financial obligations to the IMF,” said the fund.

Zimbabwe is in arrears on most of its external official debt.

Last year at the annual IMF and World Bank meetings in Lima, Zimbabwe and its preferred creditors came to a consensus that the country had to clear its $1.8bn arrears for re-engagement and financial support talks to begin.

Fin24
http://www.fin24.com/Economy/zim-finally-settles-imf-debt-20161021
 
Where did the get the money? The banks in the country does not even have money to put in the atm's for people to withdraw.
 
$1.8bn in arrears last year, yet current on all financial obligations to the IMF now after a measly $107.9m payment?!?

To who do they owe the other $1.7bn in arrears? Are they paying it with real dollars or the new Zim-printed bond notes that are the same as US dollars?
 
cyberbob1979 said:
That's why they don't have money for ATM's...
Click to expand...

Well that's one of the excuses put forward... The real reason is that the US government has stopped supplying it cos $300 million in cash from last years tobacco crop simply vanished without a trace.... The US doesn't like it when their money ends up in the hands of drug dealers and terrorists.
 
NarrowBandFtw said:
$1.8bn in arrears last year, yet current on all financial obligations to the IMF now after a measly $107.9m payment?!?

To who do they owe the other $1.7bn in arrears? Are they paying it with real dollars or the new Zim-printed bond notes that are the same as US dollars?
Click to expand...

Consider this:

You took out a R10000 loan, you promised to pay back R10 a month.
You don't pay for 36 months
You are now in arrears with your payments to the tune of R360.
You now pay back the R360, you are still in debt, but is debt you have paid for in the form of interest.

Shoddy reporting as usual from clickbait24
 
I read it as they settled everything. Wanted to comment well done first positive thing from Zim in 20 years, but just paying the arrears is also more than I expected from them. Guess they have to do it to look good before they ask for more loans.
 
konfab said:
Consider this:

You took out a R10000 loan, you promised to pay back R10 a month.
You don't pay for 36 months
You are now in arrears with your payments to the tune of R360.
You now pay back the R360, you are still in debt, but is debt you have paid for in the form of interest.

Shoddy reporting as usual from clickbait24
Click to expand...

Yesh but the quote specifically says "the country had to clear its $1.8bn arrears" i.e their debt is even more than that and just interest portion that is behind schedule is already $1.8bn, hence a payment of 100mil is chump change?
 
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