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$2 bln bailout sabotaged

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HARARE


Fears are growing that the Lima Plan which seek to settle $1.8 bln arrears owed to preferred financial institutions, the World Bank, IMF and AfDB before unlocking $2 bln in fresh funding is all but dead in the water amid growing indications that lack of comprehensive reforms and a strong lobby against it have thwarted the initiative. Authorities have not been able to reform such benchmarks as fiscal targets and other statutory obligations. Sources say increased issuance of Treasury Bills could also affect the arrears clearance plan. There are also assertions in the market that government is abusing the Real Time Gross Settlement balances to meet its financial obligations. Source also says the Indigenization policy will also scuttle the Lima plan. – Zim Ind

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