US Sanction Bill Not to Affect Zimbabwean Economy At Once: Parliament Official

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Last updated at: (Beijing Time) Friday, December 07, 2001

US Sanction Bill Not to Affect Zimbabwean Economy At Once: Parliament Official

A Zimbabwean parliament official said Thursday that a U.S. bill threatening to impose sanctions on Zimbabwe will not affect the country's economy immediately.

A Zimbabwean parliament official said Thursday that a U.S. bill threatening to impose sanctions on Zimbabwe will not affect the country's economy immediately.

David Chapfika, chairman of the parliamentary committee onbudget, finance and economic Development, said the passing of the Zimbabwe Democracy Bill by the House of Representatives of the United States on Tuesday would not have an immediate effect on the economy of Zimbabwe.

Chapfika said that he believed US President George Bush wouldnot sign the bill, which seeks to stop all financial assistance and debt relief to Zimbabwe by the US.

"I think President Bush will not sign in view of the Abuja Agreement which recommends that the British have to solicit forinternational support to finance the land reform program in Zimbabwe," he said.

The parliament official said for the past three years Zimbabwe had been under sanctions as it had not received any credit from the international lending institutions like the International Monetary Fund and the World Bank.

Economic trade consultant Smuel Undenge said the bill would not change much the economy of the country as it had not been receiving money from international lenders.

"In a way we have been under de-facto sanctions with regard toaid and have not received anything for the past three years," saidUndenge.

"Zimbabwe was denied membership of the African Growth Opportunity Act and the Bill will just be endorsing what was already taking place," he said.

The effect would be to stop direct foreign investment into Zimbabwe and reduce access by local companies to offshore loans for capital projects, according to Undenge.

The IMF and the World Bank stopped crucial balance of payments support to Zimbabwe three years ago and many financial institutions cut off the country from accessing offshore loans.The IMF recently further removed Zimbabwe from the list ofcountries eligible to borrow resources under the Poverty Reductionand Growth Facility because of a 53 million US dollars debt.The country owes various international creditors about 600million US dollars because of a critical shortage of foreignexchange as a result of depressed exports.