JUST IN: Govt reduces domestic debt

25 Apr, 2019 - 11:04 0 Views
JUST IN: Govt reduces domestic debt Prof Mthuli Ncube

The Sunday News

 Business Editor

Zimbabwe’s domestic debt has gone down as a percentage of Gross Domestic Product after the Government paid more $200 million to some of its creditors in January, Finance Minister Professor Mthuli Ncube has said.

Addressing delegates attending a Zimra breakfast meeting held at a local hotel in Bulawayo as part of the ongoing ZITF on Thursday, Prof Ncube said Government was now able to manage its expenditure hence its ability to meet some of its debt obligations.

The Government has for the past few months been running a budget surplus after it introduced a raft of measures that are meant to instill fiscal disciple and  also introduced other measures to improve tax collection, chief among them the two percent tax on electronic transactions above $10.

“I am going to say that domestic debt has also gone down as a percentage of GDP. I am not yet ready to share the figures but we paid our debt in January of $200 million,” he said.

According to the 2019 budget, the country’s domestic debt stood at $9.6 billion as at end of September 2018 with the bulk of the debt in Treasury bills issued for recapitalisation of public enterprises, settling Government obligations and Reserve Bank of Zimbabwe debt assumption.

The country is also negotiating with various international lenders to reduce its foreign debt standing at more than US$7 billion. Prof Ncube said there was need to fight corruption not only in Zimra but in all sectors.

“My clarion call is for everyone to fight corruption. It is therefore important for all stakeholders, be it law enforcement agents, the legislature to enact laws that are deterrent to corruption and also institute stringent penalties so that we speak with one voice and act in unison to deal with corruption.”

 

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