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Bulgaria Writes Off 77% of Zimbabwe's Debt

1 min read Source: Novinite

From our news archive: this article was published in February 2011. Figures and rules may have changed since.

Bulgaria's government decided on Wednesday to waive USD 6.3 M or 77% of Zimbabwean debt, which has not been serviced in the past 20 years.

The remainder of Zimbabwe's debt – a total of USD1.886 M will be paid in four installments within one year, the Sofia-based cabinet said.

Should the Zimbabwean government fail to fulfill its obligation under the agreement, it will be obliged to pay the debt in full in one installment in the framework of sixty days.

Zimbabwe's USD 8.2 M debt piled up during the communist regime in Bulgaria, which collapsed in 1989, in return for arms, construction of roads and factories and technical aid.

During the years of the communist regime the debts of countries from the Third World to Bulgaria were kept secret.

When they were revealed to the public, it turned out that the international financial institutions have already drawn up a plan for them to be waived.

Originally published by Novinite.