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Bretton Woods institutions including Zimbabwe’s lenders like Paris Clubs, IMF and the World Bank favorable report on Zimbabwe is set to help investment and signing deals for the Southern African country thereby expanding the country’s economy and standards of living through the credible institutions support and useful indicators.
This means of Zimbabwe can clear its inherited debt, with an approved payment plan, it gives room for new money potentially availability from the Paris Clubs, although Zimbabwe will this time be careful about what it borrows for and how it borrows as blatantly the country needs to make sure that any loans, even the very low interest development loans, can be serviced properly and repaid as soon as yesterday to avoid the black book.
Zimbabwe can borrow for power stations, considering Zesa can sell almost anything that is generated, and for dams, so long as towns and farmers pay economic prices for raw water, and even to speed up road building along tolled highways, since the toll fees will assist in paying off loans and their servicing costs.
However Taxes as high fees cannot be set to pay back loans hence other capital spending, especially health and educational spending, will still have to come from such taxes.
The Bretton Woods Institutions including the World Bank report will help drive investment with investors dipping their money in Zimbabwe after hearing that we are doing things properly, helping to reduce non-business risks and so investors just have to work out if their investment will make the desired profits in a normal economic environment which has been declared a conducive environment.
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