THE World Bank has approved the US$1 billion loan Zimbabwe to help it close a gaping budget deficit and tackle the economic shocks from the coronavirus pandemic.

Given Zimbabwean’s classification as a lower-middle-income blend country, the US$1 billion financings comprise of US$750 million credit from The International Development Association (IDA) and a further 250 million loan from the International Bank for Reconstruction and Development (IRBD).

World Bank Country Director for Zimbabwe, Felipe Jaramillo last week announced that they are committed to supporting their clients during very challenging times.

“COVID-19 represents an unmatched shock to the global economy. The World Bank remains very committed to supporting our client countries in these very challenging times,” Jaramillo said.

“This operation provides resources to help Zimbabwe navigate the current COVID-19 crisis and to cushion the impact on livelihoods and jobs while supporting the continued operation of essential public services,” Jaramillo said.

Zimbabwe’s Gross Domestic Product is projected to 1.5% percent in 2020, the ongoing COVID-19 crisis threatens to derail progress in the reduction of poverty and boosting shared prosperity.

Amanda Ellen Jojo – Business Mail