'Report to ascertain Zimbabwe's domestic debt'

Published: 10 July 2019
Zimbabwe together with World Bank has completed a report to ascertain the level of the country's domestic debt for it to clear its long standing arrears, while in the same vein engaging potential financiers who can pay external debts in order to get fresh funding.

The southern African nation cleared its arrears with the International Monetary Fund (IMF). However, it is still finding ways to clear $2 billion worth of arrears to lenders such as the African Development Bank (AfDB) and the WB.

Accountant-general Daniel Muchemwa told the media that up until the country addresses its external debt it will continue to face acute shortages of forex.

"It will takes us time to clear these debts but we are in the process of looking or to engage someone who can pay the debts so that we will be able to get fresh funding. These lenders don't give us any money if we don't clear our arrears and has an impact on our foreign currency reserves. For instance Zambia may get US$20 billion from WB at 1% interest rate but we will go commercial at 11% interest rate. So until we repay that debt we will continue to have serious constraints on our foreign currency," he said.

The treasury carried out an exercise with a team constituting the WB to establish the internal debt.

"I understand the report is ready, we haven't seen it, I am confident that when we get it we will pay. We don't want our business to broke," he said. Asked on whether they have paid any amount up to date, Muchemwa said, "how I can pay if don't know the figure."

"When we have it, we will pay it. I am expecting to get the report on my desk next week, probably Wednesday."

Meanwhile, the Institute of Chartered Accountants of Zimbabwe (ICAZ) and the government launched the International Public Sector Accounting Standards (IPSAS) – a 3 months online certification program.

Therefore, In line with the government's decision to adopt International Public Sector Standards and following the launch of the IPSAS Implementation plan in April 2019, ICAZ introduced an IPSAS certificate in a bid to assist the government in the implementation plan.

The certificate course is supported by the Public Accountants and Auditors Board (PAAB) and supported by the Public Service Commission, Zimbabwe Revenue Authority (ZIMRA) and the Accountant General's

ICAZ, in partnership with Chartered Accountants Academy (CAA) developed this certificate course for IPSAS aimed at equipping finance personnel in the public sector, auditors and audit committee members of government parastatals on basic proficiency with IPSAS standards.

"We believe this will facilitate economic growth through good governance, transparency, accountability, good financial management and more informed public sector decision making which in turn leads to enhanced public sector financial management," it stated.

Zimbabwe is targeting to migrate to Accrual Based Accounting by 2025, a move aimed at promoting transparency and accountability in government departments.
- finx
Tags: Debt,


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