Zimbabwe: Harare opts for hybrid debt solution

Zimbabwe has adopted a two-pronged approach to tackling the country’s foreign debt that will see the African country use its rich natural resources while also embracing the HIPC debt relief initiative to pay back the more than US$7 billion owed to foreigners. The move to adopt a hybrid solution to the debt crisis comes after more than a year of strong disagreements within the Harare unity government over how to handle a burgeoning debt that Finance Minister Tendai Biti has said is the biggest obstacle to efforts to resuscitate the country’s economy ravaged by a decade-long recession.