New Ziana.

The Ministry of Finance has finished crafting a debt clearance strategy and is now waiting for cabinet to approve it, an official said yesterday.

Addressing journalists soon after meeting board members of the African Development Bank Finance Minister Tendai Biti said the strategy would guide the country clear its debts and arrears, which stand at US$5, 4 billion.

The members of the ADB board, the supreme decision making body of the bank, are in Zimbabwe to assess strides made in implementing economic recovery programmes.

They consist of 14 out of the 18 members and are being led by the dean, Dr Hassan Khedr.

"If government is to give us a green light we will implement the strategy," said Biti, who preferred to call the strategy the Zimbabwe Accelerated Debt and Arrears Programme.

Speaking that the same occasion, Dr Khedr said it was important that a debt clearance strategy implemented immediately.

"I know there are divided opinions on whether to go the HIPC way or to use own resources to clear debts," he said.

He said the country could use own resources or international aid to clear debts but timeous execution was crucial.

"Time is of essence when we talk of economic reform," he said.

Dr Khedr people in the streets should start feeling dividends of economic recovery programmes through securing jobs and further improvement of services.

"The development process is tedious and long term but can be achieved if the country is ready to have a debt clearance strategy," he said.

Minister Biti said the strategy adopted would unlock support from the international community.

"The programme is not the Highly Indebted Poor Country (HIPC) option. You can call it the Zimbabwe Accelerated Debt and Arrears Programme," he said.

He said the strategy was not, and should not be compared with the controversial HIPC.

"To talk about HIPIC is a misnomer, the HIPC window closed in 2004 and Zimbabwe even then did not qualify," he said, adding the country was in a post HIPC era.

One of key conditions for the country to secure international cooperating partners evolves around the development of a debt relief and arrears clearance strategy for the country’s external debt overhang.

"Donors are ready to assist repay our debts provided Zimbabwe comes up with a workable debt cancellation programme," he said adding the international community was eager to work with the country.

Minister Biti said it was not embarrassing to seek forgiveness for accrued debts.

"Embarrassment starts with defaulters, not asking to be forgiven," he said.

Dr Hassan Khedr said the presence of almost all the directors of the board indicated interest in supporting Zimbabwe.

"We are coming with an open eye looking at accomplishments the country was able to achieve in a short time.

"The board recognized significant strides and improvement in areas of agriculture, mining and tourism," he said. —New Ziana.

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