Published: 27 September 2013

Government says the country's external debt estimated at over $8 billion remains a major threat to the growth of the economy.

With the recently sworn in cabinet beginning to direct energies towards the resuscitation of the economy, government has acknowledged that the obtaining huge debt overhang is a source of concern as it has denied the country an opportunity to get concessionary loans from multilateral financial institutions.

Addressing cabinet ministers, deputy ministers, permanent secretaries and other senior government officials who attended the Zimbabwe Programme for Socio-Economic Transformation (ZIMPSET) consultative meeting, Finance Minister Patrick Chinamasa said the country takes seriously the on-going re-engagement with the International Monetary Fund (IMF).

Chinamasa also challenged cabinet ministers to ensure that there is discipline and team work in the discharge of duties to ensure that the country emerges out of the current economic setback.

He also stressed the need for clarity, consistency and co-ordination in the implementation of economic policies.

Government committed itself to IMF's staff monitoring programme (SMP) in June as part of efforts to clear the sovereign debt.

The SMP is an informal agreement between country authorities and the fund staff to monitor the implementation of the authorities' economic programmes.

The IMF assessment team is expected in the country by the end of October. 
- zbc

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