Zimbabwe should not borrow more money from IMF- survey

Zimbabwe should not borrow money from the International Monetary Fund or the World Bank because this will not bring about economic recovery but will sink the country deeper into debt.

More than two thirds of those who participated in an internet survey by The Insider said the country should not borrow money from the two Brookings Institutions.

This was after a report by the Jubilee Debt campaign revealed that Zimbabwe borrowed US$7.7 billion, repaid S$11.4 billion, but still owed more than US$7 billion.

The report, entitled Uncovering Zimbabwe’s debt , calls on Zimbabwe to examine what the money borrowed was used for before repaying the loans.

Some of the money was borrowed for example to grow trees that were not needed.

Zimbabwe was also given loans to buy food during one of the worst droughts in the country’s history in 1992 instead of receiving drought relief.

The report also demonstrates that the IMF and World Bank destroyed the country’s peasant agriculture and forced Zimbabwe to abandon its strategic grain reserves.

Zimbabwe’ arrears to the IMF, for example, now stand at US$140 million.

Finance Minister Tendai Biti has suggested borrowing from the Paris Club to pay the arrears, something that defies all logic.

Where Zimbabwe’s debt comes from:

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