External debt soars

Zimbabwe’s external debt soared to US$8,2 billion as at end September 2020, according to latest figures from the Treasury, with arrears now constituting 77 percent of the country’s foreign obligations.

The external debt rose by US$106 million from December 2019 and this was mainly due to penalties and interest arrears, the Treasury said.

Of the total external debt, 17 percent is owed by public entities through state guarantees, it added. Arrears remain a major component of the external debt, at US$6,34 billion.

Multilateral external debt, as at
end September 2020, stood at US$2,65 billion, of which 90 percent are arrears.

Arrears to the World Bank are US$1,33 billion, African Development Bank, US$689 million, European Investment Bank, US$329 million and other multilateral creditors, US$28 million.

Similarly, bilateral external debt is estimated at US$5,56 billion (68 percent of total public and publicly guaranteed external debt), of which arrears account for 71 percent of total bilateral debt. Debt owed to the Paris Club creditors stood at US$3,63 billion and non-Paris Club, US$1,63 billion.

Domestic debt as at 30 September 2020 was $12,5 billion or 1,2 percent of GDP and 1,8 percent of the total public debt.

In 2020, domestic debt has been stable reflecting improved management of the fiscus together with some increased debt service repayments.-ebusinessweekly.co.zw