HomeBusiness DigestGovt external debt at US$3, 9 billion in 2005

Govt external debt at US$3, 9 billion in 2005

Eric Chiriga

GOVERNMENT closed the year 2005 with a total external debt outstanding of US$3,9 billion against export receipts of only US$1,7 billion. This comes on the b

ackdrop of government recording a revenue of only $33,4 trillion in the same period while saddled by a domestic debt of over $15,9 trillion.

According to the Reserve Bank of Zimbabwe’s (RBZ) monthly review of January 2006, which is the latest, the government had an outstanding external debt of US$3, 9 billion, equivalent to $402 trillion using the interbank rate of US$1:$101 195,41. The RBZ said at the close of 2005, bilateral and multilateral creditors were US$1,44 billion and US$1,46 billion respectively. Private creditors were zero.

The RBZ report said during the twelve months ended December 2005, government recorded revenue of only $33,4 trillion.

Out of the revenue, income and profit tax contributed $16,33 trillion, VAT ($10,55 trillion), customs duties tax ($3,86 trillion) and exercise duty income was $1,06 trillion.

In his monetary policy for the fourth quarter 2005, central bank governor Gideon Gono said that the country had export receipts of US$1,7 billion.

“The twelve month period to December 31, 2005 saw foreign exchange inflows into the formal market amounting to US$1,7 billion, compared to a total of US$1,71 billion in 2004 representing a decline of 0,46%.

Gono reported that total export shipments for the year 2005 amounted to US$1,43 billion a decline of 9,04% from the 2004 figure of US$1,58 billion.

Meanwhile, the government’s domestic debt ballooned to $21 trillion from $15 trillion.

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