Zimbabwe’s national debt worrisome-Zimcodd

March 21, 2019
| Report Focus News

Harare- The Zimbabwe Coalition on Debt and Development (ZIMCODD) has expressed concern over the country’s mounting debt.

Speaking during a media training on debt in the capital, ZIMCODD executive director Janet Zhou said what is worrying is the rise in domestic debt within a short space of time.

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“We have a national debt stock of close to USD18 billion comprised of both domestic and external debt. Worrisome is the exponential rise in domestic debt within a short space of time raising a key question on debt transparency.

“Despite the intensity of the public debt crisis in the country there is a gap in public debt reporting by both state owned and private media” said Zhou
With the country already saddled by the huge debt and as the borrowing appetite continues Zhou said the government violated Constitutional provisions.

“The Government violated Constitutional provisions guiding the loan contraction processes but the media is yet to create public opinion and hold Government accountable. Government’s loan contraction processes have violated Section 300 of the constitution which set limits on state borrowings, public debt and state guarantees” she said
Section 61 (a-b) of the Public Finance Management Act stipulates that the aggregate amount that may be borrowed in any financial year shall not exceed 30% of the general government revenue in the previous year.
According to Zhou the 2018 overdraft with the Central Bank stood at USD 2.3 Billion as opposed the statutory limit of USD 762.8 million.

“In 2018 alone, the overdraft with the Central bank stood at US$2.3 billion against the statutory limit of US$762.8 million as set by the Reserve Bank of Zimbabwe Act” she added

In order to curtail the national debt Zhou called for a national debt audit.