ZIMBABWE expects to secure about $2 billion in external lines of credit from three preferred creditors once Government clears the outstanding arrears to foreign lenders, an official said.

The country has tabled a $1.7 billion debt clearance plan to the World Bank and the Africa Development Bank (AfDB), which has already been approved.

The clearing of the arrears is expected to reduce country risk and open fresh avenues for credit from external private lenders.

Zimbabwe’s three preferred creditors are the African Development Bank (AfDB), World Bank and the International Monetary Fund (IMF). Last October Zimbabwe paid $107,9 million it owed to IMF. The AfDB and World Bank are owed a combined $1,7 billion. A preferred creditor is a creditor receiving a preferential right to payment upon the debtor’s bankruptcy under applicable insolvency laws.

Reserve Bank of Zimbabwe (RBZ) Deputy Governor Dr Khupukile Mlambo said re-engagement with the international financers was crucial in attracting lines of credit and turning the economy around.