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afrol.com, 4 October - The World Bank yesterday affirmed that it had put Zimbabwe on a list of bad payers after the country's payment on its loan was overdue by more than six months. At the date of this action, the principal amount outstanding loans to Zimbabwe was approximately US$ 452 million. "This action was in accordance with the bank's established policy of placing all its loans and credits to, or guaranteed by, a country in non-accrual status if payment on any loan or credit is overdue by more than six months," the World Bank statement said. Inflation has reached 120% and the country owes US$ 383 million in debt repayments, including US$ 47 million to the World Bank. Zimbabwe also faces serious foreign currency shortages, resulting in failure to pay foreign suppliers of fuel and other raw materials. According to an analysis by the South African Mail and Guardian, this action by the World Bank means classifying "Zimbabwe as one of the world's worst economic pariahs, with potentially damaging consequences for South Africa and the entire sub-continent." According to IRIN, the inclusion of Zimbabwe on the bank's list of bad payers means Zimbabwe will no longer be eligible for any World Bank loans. Other international banks, donors and investors, added the analysts, were more likely to shun the country as the result, which would further worsen the economic crisis faced by Zimbabwe. The World Bank, the International Monetary Fund (IMF) and major donors last year suspended aid to Zimbabwe after the government failed to control public spending and for misleading the IMF about its spending in the war in Congo Kinshasa (DRC). Most foreign aid agencies also have stopped their cooperation due to the political oppression in the country.
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