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RBZ to reject majority of debts owed to institutions





The Reserve Bank of Zimbabwe's Monetary Policy Committee plans to "reject the majority of debts" owed to institutions, a move it hopes will save the southern African nation much-needed foreign currency, Eddie Cross, a member of the committee, said.

The country is unable to pay for adequate fuel and wheat imports.

"We will ask that a haircut be taken by creditors," said Cross in a December 5 interview in the capital, Harare.

In February, the central bank took over $1.2bn (R17.49bn) of legacy debt when it dropped the 1:1 parity between its currency and the US dollar. The Zimbabwe dollar now trades at 16.42 to the greenback.

Cross put the legacy debt at $2.6bn, more than double the central bank's previously stated figure. He didn't provide further details.

His comments on legacy debt echo similar views made last month by George Guvamatanga, the permanent secretary in the finance ministry, that institutions owed legacy debt should consider writing down some of the amount.

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Chuka (Webby) Aniemeka
Chuka (Webby) Aniemeka

Chuka is an experienced certified web developer with an extensive background in computer science and 18+ years in web design &development. His previous experience ranges from redesigning existing website to solving complex technical problems with object-oriented programming. Very experienced with Microsoft SQL Server, PHP and advanced JavaScript. He loves to travel and watch movies.

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