Spread This NewsBy Alois VingaZIMBABWE’s total debt stock has surged to US$21.5 billion, rising by an estimated US$1 billion from the official figures disclosed during the same period last year.The unsustainable debt continues to choke Zimbabwe‘s capacity to unlock external funding, with local debt being criticised for crowding out the private sector.Presenting the 2025 Mid-Term Budget Review Thursday, Finance Minister Mthuli Ncube said the debt stock comprises local and external debt.“In US$ terms, the total PPG debt as at end March 2025, amounted to US$21.5 billion, comprising external debt stock of US$12.6 billion and domestic debt stock of US$8.9 billion. This brings the debt-to-GDP ratio to 44% as at 31 March 2025,” he said.In local currency terms, the country’s stock of Public and Publicly Guaranteed (PPG) debt stood at ZiG576.5 billion as at the end of March 2025. The debt was external debt totalling ZiG337.7 billion, and domestic debt amounting to ZiG238.8 billion, representing 58.6% and 41.4% respectively.“The external and domestic debt arrears as at end March 2025 amounted to US$7.8 billion, constituting 36% of total PPG debt.
The accumulation of arrears since the year 2000 have been worsening the country`s debt situation, constraining access to external concessional financing.“In this regard, the government is implementing the Arrears Clearance and Debt Resolution Roadmap in order to restore debt sustainability and unlock critical external financing needed for the country’s development programs,” he said.Domestic debt service in local currency totalled ZiG1.64 billion, comprising both principal and interest payments during the period January to June 2025.During the period January to June 2025, Treasury made payments amounting to US$176.28 million for external debt service, which includes US$93.72 million towards the active portfolio, US$79.75 million for legacy debts and US$2.81 million of token payments to the International Financial Institutions and the sixteen Paris Club Bilateral Creditors.Of this, ZiG39.52 million was paid towards interest payments and ZiG1.60 billion for principal payments related to ZiG-denominated Treasury Bills and bonds.
Originally published on New Zimbabwe
Source: Newzimbabwe
