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| author/source:APA |
| published:Thu 30-Apr-2009 |
| posted on this site:Mon 4-May-2009 |
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| Article Type : News |
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| Under African Development Bank sanctions since 2000 |
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Harare - Zimbabwe has been under African Development Bank (AfDB) sanctions since 2000 when the southern African country started accumulating arrears on its loan repayments. Faced with a myriad of socio-economic challenges over the past nine years, Zimbabwe’s arrears with the AfDB have ballooned over the years and were last estimated at nearly US$350 million in March 2007. An official from the Finance Ministry said the arrears build-up is blamed on Zimbabwe’s inability to generate enough foreign currency to enable it to meet all its external commitments, including servicing debt to such institutions as the AfDB. “We are confident of clearing the outstanding amounts owed to the African Development Bank, the World Bank and International Monetary Fund (IMF) in the near future as changes taking place on the political front begin to bear fruit,” the official told APA.
In addition to arrears to the AfDB, Zimbabwe owes US$130 million in outstanding payments to the IMF and a further US$600 million to the World Bank. The three multilateral financial institutions have suspended balance of payments support for Zimbabwe, pending the repayment of the outstanding debts and a commitment to the implementation of a credible macroeconomic programme capable of rejuvenating the troubled southern African economy. Although the AfDB suspended operations in Zimbabwe because of sanctions, the bank continues to engage the Harare government through policy and arrears dialogue and provision of humanitarian assistance. Since the imposition of sanctions, the AfDB has provided Zimbabwe with humanitarian assistance to alleviate hunger in 2002 and 2005. The bank commenced operations in Zimbabwe in 1982 and had prior to the aid suspension approved more than 20 projects valued at over US$470 million.
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