Zimbabwe Begs For Aid To Avoid "Collapse"

Zimbabwe finds itself in economic dire straits. Again.

The South African nation which previously wiped out its debt with a historic round of hyperinflation, is trying a different approach this time and is pleading with international institutions to help it eliminate billions of dollars in debt so the country can avoid economic collapse and unlock funds to fight the coronavirus pandemic.

Taking a page out of the Italian playbook, finance minister Mthuli Ncube told the IMF, African Development Bank and other institutions in a letter seen by the Financial Times that without urgent aid to clear arrears owed to official lenders, Zimbabwe faced "domestic collapse."

As discussed previously, the IMF and other bodies have pledged billions of dollars in emergency loans to help emerging market nations battle the pandemic and shore up locked-down economies...

As discussed previously, the IMF and other bodies have pledged billions of dollars in emergency loans to help emerging market nations battle the pandemic and shore up locked-down economies...

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... But Zimbabwe – along with Sudan and Eritrea – is excluded from such funds because of its longstanding arrears. As the FT reports, Zimbabwe is about $2bn behind on payments to official lenders including the World Bank and AfDB, although it has paid off the IMF.

In hope of generating some goodwill, and in a sign of its desperation to access funds, President Emmerson Mnangagwa's government took responsibility for "recent policy mis-steps" - read cronyism - which have included state payouts to a company led by a close ally of the president. Last year, the payouts to Sakunda, a fuel importer headed by Kudakwashe Tagwirei, were financed with, surprise, money-printing that triggered a currency collapse and a warning from the IMF. A subsidy for gold miners that was financed with money creation also alarmed the IMF when it was uncovered.

"Zimbabwe breaks my heart every day," a senior official at the IMF said. "I know the path forward for other countries, but the thing that stops it is arrears to the World Bank and the AfDB. Then there’s the bigger issue of politics."

Ncube, a Cambridge-educated mathematician, was picked from academia by the government in 2018 to fix the economy. But his efforts have been stymied by mismanagement and corruption within the government, an official from an international finance institution said. In the letter, Ncube asked for "urgent and high-level dialogue" on a bridge loan to clear the multilateral arrears, as well as the rescheduling of other overdue debts owed to governments.

In other words, take out debt to repay existing debt. In return for help, Zimbabwe would pledge to halt central bank money printing and "eliminate discretion in the allocation of foreign exchange."

Which for those familiar with Zimbabwe's "monetary policy" - which consists of nothing else but printing money - is hilarious.

https://www.zerohedge.com/markets/zimbabwe-begs-aid-avoid-collapse

Let muds live in a White country and they live as long as "coons" do unless they shoot each other or get shot when they dindu nuffin.

Give dindus a country and they'll starve to death. And, (((jew boy))) Henry Kissinger helped engineer the downfall of Rhodesia, South Africa, and Namibia, just to name a few countries that (((the tribe))) helps destroy and then demands the goyim save the countries. Personally, I just say let the niggers fix their countries themselves or eat each other to zero population.

C'est la vie.