Zimbabwe is racing to clean its balance sheet ahead of the international financial institutions’ board meetings expected in October for the country to be considered for fresh capital. At the October 26 meetings, the boards of the African Development Bank, the World Bank and the International Monetary Fund are expected to consider Zimbabwe for a funding programme and therefore it is imperative for the country to have cleared the $1,8 billion arrears to show commitment to dealing with the debt overhang. Zimbabwe owes multilateral and bilateral creditors about $10 billion but arrears have run into $1,8 billion. Reserve Bank of Zimbabwe Governor John Mangudya said clearing arrears could solicit a favourable response from the IFIs. Mangudya also commented on other wide ranging issues relating to the financial services sector and the economy in general. He noted the growth in the use of plastic money saying about $5,5 billion moved through the electronic payment system from $5,4 billion moved in June.
Point of sale transactions grew to $19,3 million in June up from $18,3 million in May. – Herald