World Bank chief says Zimbabwe needs G20 help to exit debt trap

Zimbabwe’s best chance of exiting a 25-year debt default is to engage the Group of 20 nations to help formulate a solution and stop trying to work its way out of the quagmire itself, World Bank President Ajay Banga said.

The southern African country owes the World Bank and other creditors a total of $21-billion and has tried numerous unsuccessful strategies to restore its access to global capital markets.

Those ranged from attempting to repay its debts using the proceeds of metal sales and recently approaching 10 nations for help to raise $2.6-billion to pay its arrears.

“Trying to figure it out on your own, you’ll be doing this for the next five years,” Banga said in an interview in Maputo, Mozambique’s capital. “They need to figure out a way to reach out to the G20 and say, we raise our hand, we’d like to be part of this process.”

Zimbabwe first