The finance minister of Zimbabwe claims the country has just $217 in the government’s bank account. After paying the salaries for government employees last week, Tendai Biti explains that there is almost no money left. The finance minister claims that the country is on the verge of economic collapse.
“Zimbabwe has faced issues for several years, but finance minister Tendai Biti believes its problems are only getting worse. The country has faced international sanctions, investment issues and an overall decline in production. Hyper inflation nearly destroyed Zimbabwe, and now the government is still facing its own issues.
“With limited options, Zimbabwe plans to ask for help from other nations to avert a complete economic collapse or crisis in the African nation. One of the problems it faces is the lack of funds for an upcoming election. The country has indicated it needs at least $104 million to run a proper election.
“The International Monetary Fund has noted that Zimbabwe is still in recovery and growth is limited. One of the aspects of the government that is being blamed for the current economic state is the unexpected rise in salaries for workers. In recent years, their salaries have increased by 22 percent. Although Zimbabwe has tried to reduce costs, it is a measure that comes too late considering how much has been spent. It claims that monitoring has improved while a hiring freeze should slow down some of the expenses.
“Hyper inflation lasted for more than a decade in Zimbabwe. Despite a return to normalcy in recent years, its impact is still being felt and may explain why the bank account for an entire nation has fallen to a total of $217. Zimbabwe claims it has plans to increase its diamond exports to boost revenue, but falling prices on the prized gems are hurting the idea. Zimbabwe is not the first nation to face economic issues. Greece is another example that has been on the verge of bankruptcy several times.
“Zimbabwe’s problems may not end after the election. Even if it acquires international support and funding for the election, the issues are bound to continue. Some have predicted it may lead to violence and discontent among residents. There are also concerns that the government will stop paying employees and create an economic collapse. In addition, international sanctions are still in effect, so Zimbabwe’s attempts to fix its problems are being stopped by other forces.