ZIMBABWE has paid US$700 million to the African Development Bank (AfDB) to reduce its foreign debt, the bank said Monday.
AfDB said in a statement that Zimbabwe had been in arrears and made the repayment last month despite the deepening foreign exchange shortages facing the embattled southern African nation.
"Zimbabwe has, in all, paid 700 million dollars to the bank group despite numerous economic challenges currently facing the country, both globally and locally," the bank said on the eve of its annual meeting in Maputo.
Zimbabwe made a 500-million-dollar repayment to AfDB and an additional 200 million dollars to the bank's subsidiary lender, African Development Fund, on April 14, two weeks after Zimbabwe's harmonized elections.
According to the statement, the payments made were “testimony of the government's determination to live up to its international financial obligations,” said the bank.
The bank said these payments were made despite an absence of balance of payments support, declining capital inflows, recurrent droughts and rising oil prices, which had severely undermined productivity and led most industries to operate below 30% capacity.
The bank did not disclose Zimbabwe's total debt, but last month the World bank estimated that Zimbabwe's arrears to the World Bank, International Monetary Fund and the African Development Bank stood at $1,1 billion.
ADB President Donald Kaberuka told Reuters in an interview last month that the bank stood ready to help Zimbabwe once sanctions are lifted, saying in such circumstances the whole international community should be prepared to move in to help stabilize the economy.
Food crisis on the continent
Meanwhile, a report, which was launched by African Development Bank chief economist Louis Kasekende in Maputo, noted that there was a need for urgent action to stem what it termed the food crisis on the continent.
"Besides the rising price of crude oil, in the three months since January 2008, prices of some major food crops have nearly doubled," the report stated.
The African Development Bank holds its summit in Mozambique from May 14 to 15.
Attachments
READER OPINIONS
Tendai Marume • n/a Subject: AfDB payment Tue, 13 May 2008 15:59:16 • See also http://www.afrol.com/articles/28882. I think the Zimbabwe Guardian should help us with the figures or correct them if possible.
Nancy Roddick • n/a Subject: n/a Tue, 13 May 2008 15:25:49 • Too many conflicting statements: See
Stapper • stapper@hotmail.com Subject: Zimbabwe pays US$700 million to AfDB Tue, 13 May 2008 14:44:45 • I think something is wrong with this online newspaper. You publish lies and falsehoods most of the time and you seem to be acting like ZANU PF's mouthpiece. For those interested in true details of the story refer to http://www.afdb.org/portal/page?_pageid=293,174339&_dad=portal&_schema=PORTAL&press_item=30726767&press_lang=us, which willl show you that Zimbabwe paid ' US$ 500,000 to the African Development Bank and US$150,000 to the African Development Fund. Zimbabwe has, in all, paid US$ 650,000 to the Bank Group despite numerous economic challenges currently facing the country, both globally and locally. According to Mr. Abdirrahmene Beileh, AfDB acting Director in charge of Southern African countries, Zimbabwe is still owing the Bank large amounts of money in arrears.
NSM • n/a Subject: ??????? Tue, 13 May 2008 14:33:08 • This is news some of us Zimbabweans need to hear, not just propaganda and globe trotting and pleasing foreign media, an now advertising tool for those not interested in the truth. Zimbabwe's problems staerted in 1997, one wonders why.
Patriot • patriot24@yahoo.com Subject: Verify the Figures Tue, 13 May 2008 10:18:15 • According to the AfDB website the figure is US$650, 000 and not the millions that we are talking about. Do you think JOC would let Gono release millions to pay debts when there are militias and the army to support as they intensify the violence in preparation for the run off.
Gono is hoping to open lines of credits by making these payments. I would hate to be in his shoes right now.
Dbay • xtradub@hotmail.com Subject: Debt repayment Tue, 13 May 2008 08:07:15 • The question is abt the tyming of the repayment - just aftr elections!
Dd they hope to leave a clean record? So we still have credible ppl in Zanu after all!
n/a • n/a Subject: aaa Tue, 13 May 2008 07:18:56 • While it may be true that we Zimbos are going through sanctions induced difficulties caused by those who feel they have more rights than blacks from the African continent, we meet our obligations when they come due. Where the money came from is irrelevant. We are buying food for our people. Yes luxuries may not be there in supermarkets, but we are doing our best to get people to get their staple food. Zimbabwe shall prevail. Just wait and see sir alisidair. Wati wadii.
Oliver Mutyambizi • omutyambizi@yahoo.co.uk Subject: Alisdair Tue, 13 May 2008 07:03:30 • Which food are you talking about Alisdair?Are you in zim or in diaspora.We are in zim right now and we not real sure on which food you talking about.Is it very necessary to know where the money came from?So thats what you do that if you borrow money you do not pay back because of your priorities.The rule of borrowing is you have to owner your debt full stop and the government has done so.Your next question if at all,the story was like,Zim Govt failed to pay AFDB,You would have said why?Be perspective
Alisdair budd • airbud@tisali.co.uk Subject: ????? Tue, 13 May 2008 04:06:23 • Where did this money come from?
And why is the bank more important than food for the poor?
Or does that only count for ZANU supporters?
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