China has reportedly written off Zimbabwe’s debt to the Asian giant’s institutions paving way for more funding to the southern African country whose ability to access new funding has been crippled by among other things a huge debt overhang.
This is according to local radio station, ZiFM Stereo, owned by Zimbabwe’s ICT Postal and Courier Services Minister Supa Mandiwanzira, who also accompanied President Emmerson Mnangagwa on a state visit to China.
President Mnangagwa is on a 5-day state visit to China where he has had meetings with his Chinese counterpart and has reportedly signed billion dollar deals including one of $1bn for upgrading a thermal power station.
Zimbabwe owes international lenders more than $10bn in both principal debt and arrears.
The country’s domestic debt has also been ballooning and is estimated to be more than $6bn.
This has seen the country struggling to get new funding from international lenders such as the IMF and the World Bank.
China itself has also been reluctant to fund Zimbabwe after the country failed to repay a $60m debt to China Export and Credit Insurance Corporation, known as Sinosure.