Zimbabwe has received a significant boost in its efforts to resolve its debt burden after France and the United Kingdom agreed to co-chair a newly established Debt Consultative Group (DCG), under the country’s Structured Dialogue Platform.
Announcing the development, the Ministry of Finance, Investment Promotion and Economic Development, said the establishment of the Debt Consultative Group marked an important milestone in Zimbabwe’s debt resolution process and demonstrated growing international confidence in the country’s economic reform agenda.
“Zimbabwe has secured a major boost in its debt resolution efforts after France and the United Kingdom agreed to co-chair a new Debt Consultative Group under the Structured Dialogue Platform,” it said.
The Debt Consultative Group will also play a central role in advancing Zimbabwe’s US$2.7 billion arrears clearance and debt restructuring roadmap, which is aimed at restoring the country’s debt sustainability and rebuilding confidence among international financial institutions and development partners.
“The forum will coordinate engagement with creditors, support implementation of the 10-month IMF Staff-Monitored Programme, and advance Zimbabwe’s US$2.7 billion arrears clearance and debt restructuring roadmap, paving the way for restored access to concessional international financing,” the statement read.
The minister said restoring normal financial relations with international creditors remained one of the Government’s key economic priorities, as access to affordable long-term financing is critical for infrastructure development, industrialisation and sustained economic growth.
“The progress made under the Structured Dialogue Platform reflects the commitment of both Zimbabwe and its international partners to finding a durable solution to the country’s debt challenge through constructive engagement and economic reforms,” the Ministry said.
Zimbabwe has been implementing wide-ranging macroeconomic and structural reforms aimed at stabilising the economy, strengthening public financial management, enhancing transparency and improving the investment climate.
These reforms have been supported through the Structured Dialogue Platform, which brings together the Government, bilateral creditors, multilateral financial institutions and development partners to facilitate the country’s arrears clearance and debt restructuring process.
The establishment of the Debt Consultative Group is expected to strengthen coordination among creditors and provide renewed momentum to Zimbabwe’s debt resolution agenda.
