[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-110721-en":3,"doc-seo-110721-105":29,"detail-sidebar-cat-0-en-105":90},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":4,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},110721,1099514067415,"Rowan","https://ap-avatar.wpscdn.com/avatar/100002539d78ffe74a7?x-image-process=image/resize,m_fixed,w_180,h_180&k=1779092875211072502",8,"Research & Report","Zimbabwe - Joint World Bank-IMF Debt Sustainability Analysis - Risk of external debt distress","Zimbabwe is classified as in debt distress, driven by unsustainable public and publicly guaranteed (PPG) external and total debt alongside large external arrears to IFIs and official creditors. External and total public debt exceed key thresholds under baseline and shock scenarios, while domestic debt fell as a share of GDP amid high inflation after the introduction of the ZWL$. Restoring sustainability requires sustained prudent fiscal policy, ending quasi-fiscal activity, structural and governance reforms, and comprehensive creditor treatment of arrears.","Public Disclosure  \nPub lic Disc losure Authorized  \nApproved by:  \nAsad Alam and Marcello Estevão (IDA) Vitaliy Kramarenko and Anna Ilyina (IMF)  \nPrepared by the staff of the International Development Association (IDA) and the International Monetary Fund (IMF) .  \n\n| ZIMBABWE : JOINT BANK-FUND DEBT SUSTAINABILITY ANALYSIS |  |\n| --- | --- |\n| Risk of external debt distress | In debt distress |\n| Overall risk of debt distress | In debt distress |\n| Granularity in the risk rating | Unsustainable |\n| Application of judgment | No |\n\nZimbabwe is classified as “in debt distress”, with unsustainable public and publicly guaranteed (PPG) external and total debt and large external arrears.1 External and total public debt breach the thresholds in both the baseline and shock scenarios. Moreover, Zimbabwe has large and longstanding external arrears to IFIs and official creditors. Domestic debt declined as a share of GDP since the introduction of the ZWL$ in 2019 due to high levels of inflation. Restoring debt sustainability requires the continuous implementation of prudent fiscal policy, cessation of quasi-fiscal activities that have led to debt increases, structural and governance reforms to set growth on a sustainable path, as well as reaching agreement with creditors on a comprehensive treatment of Zimbabwe’s external debt and arrears. The authorities broadly concurred with staff’s assessment in the DSA and were confident that the envisaged reengagement with the international community would help restore debt sustainability.  \n1. Zimbabwe’s external public debt has increased since the last published DSA (2019 Article IV) . While the fiscal deficit has declined over 2019-2020, increased debt at end-2020 reflects primarily the Reserve Bank of Zimbabwe’s (RBZ) borrowing, part of which was used for quasi-fiscal activities, and new unfunded liabilities from a farmers’ compensation agreement (see below) .2 Domestic debt declined in real terms3 and as a percentage of GDP reflecting a sharp rise in inflation since the introduction of the ZWL$ in  \n2019. External debt is dominated by official creditors—both bilateral and multilateral—with the bulk of debt in arrears. Text Table 1 provides an overview of debt outstanding and disbursed (DoD) and accumulated arrears at end-2020.4 In 2021, the central government received disbursements for several external loans from bilateral and multilateral creditors, mainly for infrastructure projects.5  \n2. A Global Compensation Deed between former farm owners and the government has created a large unfunded liability. In the early 2000s, a challenging process was triggered on land reform with the issuance of a presidential decree to amend the Land Acquisition Act and allow the government to assume immediate ownership of land targeted for acquisition and issue orders for owners to vacate farms. Starting in the early 2010s, the government recognized the need to find a durable solution to land tenure security, though progress on this front had been slow. In July 2020, the government and former farm owners reached agreement over a global compensation for land improvements of US$3 .5 billion. The agreement envisaged a 50 percent down payment within 12 months and full payment over a period of 48 months thereafter. Subsequently , the government deferred the down payment for one year, until end-July 2022. The government paid US$0 .25 billion towards the compensation by providing shares in a mining company to displaced farmers. The remainder of the compensation—about US$3 .25 billion—remains unfunded. Securing financing for the compensation is constrained by Zimbabwe’s lack of market access. In April 2021, the government appointed a financial advisory firm to identify possible financing instruments and funding options and expects a report on financing options by mid-2022. In the absence of financing, the unfunded US$-denominated liabilities from the farmers’ compensation agreement have been incorporated under external ","cbCaiorMOj3uwhe7","https://ap.wps.com/l/cbCaiorMOj3uwhe7","pdf",893694,1,18,"English","en",105,"# Risk assessment\n## External debt distress\n## Overall risk of debt distress\n## Granularity in the risk rating\n## Judgment application","[{\"question\":\"How is Zimbabwe’s debt risk classified in this analysis?\",\"answer\":\"Zimbabwe is classified as being in debt distress, with unsustainable public and publicly guaranteed external and total debt.\"},{\"question\":\"What factors are driving the debt distress assessment?\",\"answer\":\"The assessment highlights breaches of external and total public debt thresholds in both baseline and shock scenarios, plus large and longstanding external arrears to IFIs and official creditors.\"},{\"question\":\"What actions are recommended to restore debt sustainability?\",\"answer\":\"The document calls for continuous prudent fiscal policy, cessation of quasi-fiscal activities, structural and governance reforms to support sustainable growth, and agreement with creditors on comprehensive treatment of external debt and arrears.\"}]",1784486752,45,{"code":4,"msg":30,"data":31},"ok",{"site_id":24,"language":23,"slug":32,"title":13,"keywords":33,"description":14,"schema_data":34,"social_meta":85,"head_meta":87,"extra_data":89,"updated_unix":27},"zimbabwe-joint-world-bank-imf-debt-sustainability-analysis-risk-of-external-debt-distress","",{"@graph":35,"@context":84},[36,53,67],{"@type":37,"itemListElement":38},"BreadcrumbList",[39,43,47,50],{"item":40,"name":41,"@type":42,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":44,"name":45,"@type":42,"position":46},"https://docshare.wps.com/document/","Document",2,{"item":48,"name":12,"@type":42,"position":49},"https://docshare.wps.com/document/research-report/",3,{"item":51,"name":13,"@type":42,"position":52},"https://docshare.wps.com/document/zimbabwe-joint-world-bank-imf-debt-sustainability-analysis-risk-of-external-debt-distress/110721/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":61,"encodingFormat":60,"isAccessibleForFree":62,"interactionStatistic":63},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-19",true,{"@type":64,"interactionType":65,"userInteractionCount":4},"InteractionCounter",{"@type":66},"ViewAction",{"@type":68,"mainEntity":69},"FAQPage",[70,76,80],{"name":71,"@type":72,"acceptedAnswer":73},"How is Zimbabwe’s debt risk classified in this analysis?","Question",{"text":74,"@type":75},"Zimbabwe is classified as being in debt distress, with unsustainable public and publicly guaranteed external and total debt.","Answer",{"name":77,"@type":72,"acceptedAnswer":78},"What factors are driving the debt distress assessment?",{"text":79,"@type":75},"The assessment highlights breaches of external and total public debt thresholds in both baseline and shock scenarios, plus large and longstanding external arrears to IFIs and official creditors.",{"name":81,"@type":72,"acceptedAnswer":82},"What actions are recommended to restore debt sustainability?",{"text":83,"@type":75},"The document calls for continuous prudent fiscal policy, cessation of quasi-fiscal activities, structural and governance reforms to support sustainable growth, and agreement with creditors on comprehensive treatment of external debt and arrears.","https://schema.org",{"og:url":51,"og:type":86,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":88,"canonical":51},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":91},[92,96,100,104,109,114,119,122,127,130,134],{"id":20,"doc_module":4,"doc_module_name":45,"category_name":93,"show_sort_weight":94,"slug":95},"Story & Novel",90,"story-novel",{"id":46,"doc_module":4,"doc_module_name":45,"category_name":97,"show_sort_weight":98,"slug":99},"Literature",80,"literature",{"id":52,"doc_module":4,"doc_module_name":45,"category_name":101,"show_sort_weight":102,"slug":103},"Exam",70,"exam",{"id":105,"doc_module":4,"doc_module_name":45,"category_name":106,"show_sort_weight":107,"slug":108},5,"Comic",60,"comic",{"id":110,"doc_module":4,"doc_module_name":45,"category_name":111,"show_sort_weight":112,"slug":113},6,"Technology",50,"technology",{"id":115,"doc_module":4,"doc_module_name":45,"category_name":116,"show_sort_weight":117,"slug":118},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":45,"category_name":12,"show_sort_weight":120,"slug":121},30,"research-report",{"id":123,"doc_module":4,"doc_module_name":45,"category_name":124,"show_sort_weight":125,"slug":126},9,"Religion & Spirituality",20,"religion-spirituality",{"id":125,"doc_module":4,"doc_module_name":45,"category_name":128,"show_sort_weight":125,"slug":129},"World Cup","world-cup",{"id":131,"doc_module":4,"doc_module_name":45,"category_name":132,"show_sort_weight":131,"slug":133},10,"Lifestyle","lifestyle",{"id":135,"doc_module":4,"doc_module_name":45,"category_name":136,"show_sort_weight":105,"slug":137},19,"General","general"]