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HARARE — Zimbabwe is considering mortgaging its mineral wealth to offset the country's 5.4 billion dollar debt owed to multilateral donor agencies, a government report says.

The ministry of finance report seen by AFP said various options were being considered for paying off the external debt, an essential step to secure new financing from lenders for 2010-2012.

"A key conditionality for unlocking new financing of 7.5 billion -- 10 billion (dollars) ... evolves around the development of a Debt Relief and Arreas Clearance Strategy for the country's external debt overhang of 5.4 billion, of which 3.8 billion is in arrears," the report said.

Also under consideration was using internal revenue resources, asking for debt restructuring from the Paris Club of lender nations or "going through the Highly Indebted Poor Country (HIPC) route for debt forgiveness," the report added.

Government, in co-operation with major creditors will undertake in-depth studies on the various options to come up with a "sustainable debt management and clearance solution which balances the interests of the country and its creditors," it added.

Zimbabwe has vast mineral resources, but the sector has been set back by a near decade of political and economic instability worsened by a hyperinflation, and power cuts.

According to Finance Minister Tendai Biti the country will need 45 billion dollars to restore its economic performance to levels seen in 1996/7.

Zimbabwe's economy has contracted every year since then, but is expected to grow 4.7 percent this year after the local currency was abandoned in January and a unity government took office the following month.

President Robert Mugabe, who has ruled since independence in 1980, was forced into the power-sharing arrangement with Prime Minister Morgan Tsvangirai following disputed elections last year.

The deal, known as the Global Political Agreement (GPA), remains shaky due to a raft of disputes over key jobs and claims that Tsvangirai's supporters remain the target of official persecution.

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Comments (2 posted):

ZW on 31 December, 2009 05:33:05

Kindly disregard my last post and read this one.

Accepting the fact that we are biased (we all are inherently)is it not strange to you that you always report negatively about MDC and ZPF and create MDC-T as victims or as saviours...even a toddler can see through this.
Personally I do not want favourable news rather factual and balanced reporting. In this report, for instance, you did not talk to ZPF. Why? It is not monopolising patriotism when someone points your weakness about your anti-Zimbabwe stance. It’s a fact and not monopoly and should be stated thus.
In your last paragraph you create something that I don't know where you got from. But on closer analysis, it contains the truth. It is MDC-T that has called for the destruction of the country through economic sanctions. It is MDC-T that was refusing to work with other parties to solve their differences within the GPA framework. It wanted the UN and US and EU to solve the problem through regime change. You and your newspaper were the cheerleaders. You can’t then turn around and blame people for characterizing you in the manner you presented yourself.
In fact, your last comments have just showed yourself how you can be defensive of MDC-T. Our accusations are true, after all!!
What positive have you ever reported about Zimbabwe? Did you, at any time condemn the economic sanctions or the regime agenda? If not, then (surely without monopolizing patriotism) how can we believe that you love your country?
Even now, the way you treat and report on different parties shows your bias that you wear on your sleeve. I hope you take this criticism in a positive manner. I don’t mean to be confrontational. This is feedback as a regular reader. Your negative reporting has never discouraged me from reading your news. I learn something everytime.

Tapera Nenzaracholera Chavachigumbu on 31 December, 2009 10:30:33

Zw,

How can your knowledge of Zimbabwe, be solely based on what you read from this paper?

Are you not aware of the Zimbabwe political environment during the past thirty years?

Your quietness on why this paper and many others are online, the banning and destruction of the independent voices (The Daily Newspaper and Capital Radio). Meanwhile,the Zanu propaganda machine is being enabled by the same government.

Your mention of the "sanctions and regime change", gives you away. The Zanu Governments and their propaganda machinery are more knowledgeable on those subjects.

The Herald and the ZBC, are expects on them and, come free of charge.