Browsing: paris club

The IMF dealt another blow to Zimbabwe’s debt problem, stating that Harare will not be eligible for a special debt relief programme unless it pays off its World Bank loan.

Zimbabwe has managed to clear the IMF debt, but the country still owes the World Bank $1.52 billion.

To qualify for the “common framework,” IMF spokesperson Gerry Rice said that Zimbabwe would have to wait until criteria for international re-engagement are in place.

They also have to clear the arrears to the World Bank.

Read: Pandora Papers: What do Russia & China have to do with Zimbabwe diamonds?

An IMF team led by Dhaneshwar Ghura had Article IV negotiations with Zimbabwean officials last month.

The lender stated during the conference that the country’s economic objectives were still under threat from unsustainable debt.

The government announced last week that external debt grew to US$13.7 billion in September, up from roughly US$10.7 …

The Paris Club (Club de Paris), a group of officials from major creditor countries has approved Kenya’s request for more debt relief to help it ease Covid-19 related financial weight.

Formed in 1956, the Paris Club, which works to find sustainable solutions to payment difficulties experienced by debtor countries, announced earlier this month that it had accepted Kenya’s request for debt-servicing suspension and gave the East African country a six-month leeway (January to June) before it resumes to pay its national debt.

“Kenya is committed to devoting the resources freed by this initiative to increase spending in order to mitigate the health, economic and social impact of the COVID19-crisis,” said the Paris Club.

Maybe the rest of East Africa can learn from Kenya and take advantage of the G20 bilateral creditors that offer what is called the Debt Service Suspension Initiative (DSSI). Launched last year, the DSSI serves to suspend …