By Lloyd Takawira
Feeling the heat amidst the cripling effects of Covid-19, 25 developing economies have received a lifeline from the
International Monetary Fund (IMF) debt relief fund.
Zimbabwe was however excluded.
A statement from the IMF executive board said the board had approved an immediate debt service relief to 25 member countries as part of measures to alleviate the devastating economic impact of the Coronavirus, with Zimbabwe missing out.
In a statement IMF managing director, Ms Kristalina Georgieva, announced the debt relief decision.
“I am pleased to say that our executive board approved immediate debt service relief to 25 of the IMF’s member countries under the IMF’s revamped Catastrophe Containment and Relief Trust (CCRT) as part of the Fund’s response to help address the impact of the COVID-19 pandemic.
“This provides grants to our poorest and most vulnerable members to cover their IMF debt obligations for an initial phase over the next six months and will help them channel more of their scarce financial resources towards vital emergency medical and other relief efforts.”
Ms Georgieva also said ” the CCRT would in the meantime provide about US$500 million in grant-based debt service relief, including the recent US$185 million pledge by the U.K. and US$100 million provided by Japan as immediately available resources.”
Countries that will receive debt service relief are: Afghanistan, Benin, Burkina Faso, Central African Republic, Chad, Comoros, Congo, D.R., The Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mali, Mozambique, Nepal, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Solomon Islands, Tajikistan, Togo, and Yemen.
Former Minister of Finance, Tendai Biti come guns blazing accusing government of corruption and abrogation of the rule of Law thus missing out on the debt relief fund .
Writting on twitter, Biti said, “20 African countries obtain debt relief and Zimbabwe is conspicuously absent .The reason is political illegitimacy, fascism &disrespect of the rule of lawReason is corruption & rent seeking behavior,cartels & #SakundaRepublic. Reason is failure to reform & stealing from from the poor”.
However FACT Zimbabwe Programs Officer, John Mbizvo dismissed Biti’s comment.
“Tendai Biti is INACCURATE. The reason Zimbabwe is not on the list is not “political illegitimacy, fascism &disrespect of the rule of lawReason is corruption & rent seeking behavior, cartels” as suggested by Mr Biti. The reason is simply put we do not owe IMF hence we do not need debt relief from IMF. We owe the World Bank not IMF”.
