Zimbabwe Cuts Gold-Buying Perks Amid Debt Repayment Efforts

Zimbabwe's government has introduced a cap on its gold-buying incentives to prevent overspending. The central bank can now spend no more than $300 million under the compensation program between now and the end of 2026.

The move is part of Zimbabwe's efforts to clear its debt arrears, which date back to 1999 when it defaulted on its loans. The country has been unable to borrow on international markets since then, with creditors including the World Bank, the Paris Club, and the African Development Bank.

Zimbabwe obtained an IMF staff-monitored program in February after lengthy negotiations. The program is not a bailout but rather a watchful eye to ensure the government handles its finances carefully.