Zimbabwe’s finance officer Patrick Chinamasa has informed the World Bank and African Development Bank (AfDB) that the southern African nation will not be able to pay the sum of $1.8 billion in arrears due to unavailability of finances at the time but will do so when economic fundamentals improve.
The government had negotiated a cheaper loan to pay the $1.8 billion but had decided against paying after realizing that the country could still remain in a debt cycle if it did not address its economic problems.
“When we think that the economic fundamentals of our economy are right, we then are in a position to repay the World Bank and the AfDB,” Chinamasa said.
“We need to put ourselves in a position that is sustainable in terms of honoring our obligations. So, to that extent, the ball is in our court.”