The Accelerated Arrears Clearance, Debt and Development Strategy (ZAADDS), if properly implemented, will go a long way in contributing towards the achievement of the Millennium Development Goals (MDGs) and poverty reduction in the country, experts say.

In addition to affecting a country’s credit rating and challenges associated with debt servicing it is evident that due to debt overhang, Zimbabwe has lost out on a number of funding opportunities from international creditors. This has forced a number of projects to be suspended or cancelled.

With only three years to the deadline set for the achievement of the Millennium Development Goals (MDGs), the linkages between MDGs and debt sustainability remains a pertinent issue. Reducing expenditure on the social sector is likely to affect the achievement of MDGs targets on education, health and environment, among others.

In resolving the debt crisis, there will be winners and losers, asserts Dr. Fanuel Bokosi of AFRODAD summing up the dilemma facing Zimbabwe as it grapples with the problem of the debt overhang. Arguing that default is not a preferred civil society option, he is also skeptical of the Heavily Indebted Poor Countries approach saying it imposes enormous moral hazards on beneficiary countries.

The Head of Zimbabwe Debt and Management Office (ZADMO) Andrew Bvumbe is optimistic of the steps that the Government is taking to address the huge and unsustainable debt burden.