Zim Owes AfDB US$510m, Says Minister Biti

The AfDB’s Fragile States Facility (FSF) window is the Bank’s central vehicle for arrears clearance and re-engagement, Biti said in Harare.

He said: “As is the case with the International Monetary Fund (IMF), the AfDB’s precondition for eligibility in accessing financing under this FSF window is dependent upon fulfilment of several conditions including respect for the preferred creditor status of the AfDB,” Biti said in Harare.

He said given Zimbabwe’s existing economic environment and in particular, the unsustainable balance of payments position, it would be necessary for the government to approach development partners for help to pay off half of the arrears to the AfDB.

Biti recently said the government owes the World Bank US$807 million.

Zimbabwe qualifies for arrears clearance support from the AfDB Group under ADF-12 Replenishment (2011-2013),” Biti said in Harare.

“Under ADF-12, US$528 million has been set aside for arrears clearance for eligible countries, which include Zimbabwe,” he said.

The payment deadline is September 2012.