Business - Economic Updates - Featured - Finance - November 6, 2020

The Public Debt Office devices a framework to Manage State Guaranteed and On-lent loans

By Staff Reporter

The Zimbabwe Public Debt Management Office has come up with a framework for evaluating, monitoring and managing guaranteed and state on-lent loans the Business Mail can reveal.

In a statement, Zimbabwe Coalition on Debt and Development (ZIMCODD), embraced the development as a step forward, dealing with the debt crisis in the country.

“The Zimbabwe Coalition on Debt and Development (ZIMCODD) would like to commend the Zimbabwe Public Debt Management Office for coming up with a framework for managing state-guaranteed and on-lent loans.

“ZIMCODD strongly believe that this is a step in the right direction towards addressing the debt crisis in the country.

“The framework will not only assist in restoring the country’s creditworthiness and credibility but will go a long way in the progressive realisation of citizens’ social and economic rights which have since been sacrificed as the government continuously divert resources towards debt repayment”, said ZIMCODD.

However, ZIMCODD urged The Ministry of Finance and Economic Development to let the Public Debt Management Office act independently divorced from oversight from all government institutions.

“ZIMCODD urges the Ministry of Finance and Economic Development and all public entities to respect the rules and procedures on state-guaranteed and on-lent loans in letter and spirit.

“The Ministry of Finance and Economic Development and the entire government should guarantee the Public Debt Management Office’s independence by respecting its decisions and advice for effectiveness in managing state-guaranteed and on-lent loans.

“There is need for the government, through the Ministry of Finance and Economic Development to ensure that all debt relief agreements and new loan arrangements are formulated transparently, with relevant information made available promptly, and with the knowledge of the public and with legislative frameworks and institutional arrangements and mechanisms for consultation and accountability being established”, adds ZIMCODD.

Recently the Reserve Bank of Zimbabwe is reported to have accumulated a US$2,23 billion debt in 12 months since July 2019 and the national debt is currently estimated at over US$25 billion.

 

 

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