IMF, World Bank endorse Zimbabwe’s plan to clear arrears

Below is Ncube’s full statement

REPORT ON THE ZIMBABWE’S RE-ENGAGEMENT WITH CO-OPERATING PARTNERS ON THE ARREARS CLEARANCE ROADMAP BALI, INDONESIA: 10 OCTOBER 2018

Today we held a crucial meeting with co-operating partners and International Financial Institutions to discuss and map the way forward on the country’s Arrears Clearance Road Map in Bali, Indonesia.

The meeting was chaired by the World Bank Group and was attended by the all three International Financial Institutions (IFIs), the African Development Bank, the International Monetary Fund and the World Bank Group, Paris Club Group of creditors as represented by the French, the European Union, and other key bilateral partners such as the United Kingdom, United States of America, Australia, Netherlands, South Africa, among others.

In ensuing discussions, the Minister of Finance and Economic Development, Hon. Prof. Mthuli Ncube made a presentation on policy reforms being undertaken by the New Dispensation, focusing on the Vision 2030, as enunciated by His Excellency, the President and the Transitional Stabilisation Programme (TSP), which is the policy implementation programme of Vision 2030.

The Minister’s presentation centred on political and economic reforms being undertaken by Government, especially fiscal consolidation, state enterprises reforms, monetary sector reforms and a roadmap on arrears clearance.

The co-operating partners expressed their endorsement to the Transitional Stabilisation Programme, as it captures adequately the policy reforms that Government is implementing in order to turn around the country’s economic fortunes.

In this regard, the international community emphasized the need to judiciously implement the measures as outlined in the TSP. They reiterated that implementation of the TSP is crucial for arrears clearance.

Furthermore, Zimbabwe’s request for a more accommodative treatment under the Pari Passu principle received positive consideration by the partners.

The co-operating partners expressed their endorsement to the Transitional Stabilisation Programme, as it captures adequately the policy reforms that Government is implementing in order to turn around the country’s economic fortunes.

On the other hand, the French expressed their support and advised that it is critical that all the Paris Club Group of creditors have consensus in order to fulfil the arrears clearance process.

It is also important to note that all the cooperating partners and creditors present, uniformly expressed their partners for Zimbabwe and its arrears clearance Road Map and that the meeting has been the best so far on Zimbabwe’s arrears clearance process.

Shortly after the Roundtable meeting, the Minister met with the US Deputy Assistant Secretary of Treasury, Mr Erick Meyer. In discussions, the US showed that it is a friend of Zimbabwe willing to help. Mr Erick Meyer requested that Zimbabwe see ZIDERA in a positive way which was agreed to by the delegation.

Further, the US Treasury undertook to arrange meetings for the Minister in Washington DC with US Congressmen and other think tanks.

Hon. Prof. Mthuli Ncube
Minister of Finance and Economic Development
10 October 2018

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