Identifier
Created
Classification
Origin
09HARARE695
2009-08-28 12:35:00
CONFIDENTIAL
Embassy Harare
Cable title:
ZIMBABWE THINKS AHEAD ON DEBT RELIEF
how-toVZCZCXRO3452 PP RUEHBZ RUEHDU RUEHMR RUEHRN DE RUEHSB #0695 2401235 ZNY CCCCC ZZH P 281235Z AUG 09 FM AMEMBASSY HARARE TO RUEHC/SECSTATE WASHDC PRIORITY 4858 INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE RUEATRS/DEPT OF TREASURY WASHDC
C O N F I D E N T I A L HARARE 000695
SIPDIS
E.O. 12958: DECL: 08/27/2019
TAGS: ECON, EFIN, PGOV, ZI
SUBJECT: ZIMBABWE THINKS AHEAD ON DEBT RELIEF
Classified By: CDA KATHERINE DHANANI FOR REASON 1.4 (B) AND (D)
C O N F I D E N T I A L HARARE 000695
SIPDIS
E.O. 12958: DECL: 08/27/2019
TAGS: ECON, EFIN, PGOV, ZI
SUBJECT: ZIMBABWE THINKS AHEAD ON DEBT RELIEF
Classified By: CDA KATHERINE DHANANI FOR REASON 1.4 (B) AND (D)
1. (C) According to an official of the Reserve Bank of
Zimbabwe (RBZ),the GOZ has begun preparations to approach
the Paris Club for debt relief. Simon Nyarota, head of the
RBZ's research division, told us on August 26 that staff in
both the Ministry of Finance and the central bank were
working on preliminary preparations for debt negotiations.
Nyarota said embassies of Paris Club creditors would receive
a letter from the Ministry of Finance in "two or three weeks"
concerning these preparations. The French Ambassador
confirmed that Finance Minister Biti had spoken to him about
Zimbabwe's desire to seek Paris Club relief.
2. (U) In April the International Monetary Fund estimated
that Zimbabwe's external debt in 2008 was USD 6 billion or
189 percent of gross DOMESTIC product. Of that amount, USD 4
billion is the GOZ's external debt.
3. (C) Comment: Many obstacles stand between the GOZ and the
Paris Club. Under present conditions, this is at best a
subject for the medium term -- after necessary reforms take
place. If the GOZ recognizes this, then there could be
practical value in technical discussions that do not raise
expectations, and which give us a window on the workings of
the RBZ. When and if the letter reaches us, we may be able
to tell if the GOZ,s preparations are based on realitic
thinking. We suspect not.
DHANANI
DHANANI
SIPDIS
E.O. 12958: DECL: 08/27/2019
TAGS: ECON, EFIN, PGOV, ZI
SUBJECT: ZIMBABWE THINKS AHEAD ON DEBT RELIEF
Classified By: CDA KATHERINE DHANANI FOR REASON 1.4 (B) AND (D)
1. (C) According to an official of the Reserve Bank of
Zimbabwe (RBZ),the GOZ has begun preparations to approach
the Paris Club for debt relief. Simon Nyarota, head of the
RBZ's research division, told us on August 26 that staff in
both the Ministry of Finance and the central bank were
working on preliminary preparations for debt negotiations.
Nyarota said embassies of Paris Club creditors would receive
a letter from the Ministry of Finance in "two or three weeks"
concerning these preparations. The French Ambassador
confirmed that Finance Minister Biti had spoken to him about
Zimbabwe's desire to seek Paris Club relief.
2. (U) In April the International Monetary Fund estimated
that Zimbabwe's external debt in 2008 was USD 6 billion or
189 percent of gross DOMESTIC product. Of that amount, USD 4
billion is the GOZ's external debt.
3. (C) Comment: Many obstacles stand between the GOZ and the
Paris Club. Under present conditions, this is at best a
subject for the medium term -- after necessary reforms take
place. If the GOZ recognizes this, then there could be
practical value in technical discussions that do not raise
expectations, and which give us a window on the workings of
the RBZ. When and if the letter reaches us, we may be able
to tell if the GOZ,s preparations are based on realitic
thinking. We suspect not.
DHANANI
DHANANI