Zim needs credible plan to clear arrears - IMF

Harare - The International Monetary Fund said it would consider extending new financial support to Zimbabwe only if it agrees to clear arrears with international financial institutions.

Zimbabwe owes $9bn in external debt, half of it in arrears and has not received financial support from the IMF, World Bank and African Development Bank since 1999 due to policy differences between President Robert Mugabe and the West.

Zimbabwe's economy is slowing down due to lack of foreign investment, electricity shortages and expensive loans. Cheaper imports are damaging local industry, forcing firms to close.