By 
By Ross Moyo
Finance Minister Professor Mthuli Ncube, on Monday hosted an economic summit as the country’s Chancellor of the Exchequer and Treasury boss in the resort city of Victoria Falls, were Zimbabwe’s USD$21 Billion dollar debt could be partly wiped out if the country implements climate change programs.
Zimbabwe creditors have pondered on the idea of ”debt-for-climate swaps to cure Zimbabwe’s arrears. Raul Fernandez, the United Nations Development Program project manager for climate development framework revealed that, ”Zimbabwe’s creditors may be willing to consider a debt-for-climate swap with the nation as part of a restructure of its $21 billion arrears.”
Speaking to delegates at the economic summit in Victoria Falls, Fernandez said, “They need to see also some action from the government, this commitment to structural reforms,” he said. “There is that willingness, they have this in their radar, this option.”
Debt swaps, such as those for climate and nature, are innovative financial mechanisms where a portion of a developing country’s external liabilities are forgiven in exchange for commitments to invest in climate or marine conservation projects.Barbados, Belize, Gabon and Ecuador have seen similar instruments being rolled out in their respective countries setting a precedence for the Southern African nation of Zimbabwe to follow suite.
Fernandez added, “It can lead to substantial debt reduction,”
“In some cases it can lead to an improvement of the payment conditions.”
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