Zimbabwe's massive debt could be eased significantly after two economic powerhouses, the United Kingdom and France, agreed to be a part of the newly established Debt Consultative Group (DCG) under Zimbabwe's Structured Dialogue Platform.

Both European nations are set to co-chair the DCG, according to Zimbabwe's Finance, Investment Promotion and Economic Development ministry.

The ministry lauded the move as pivotal in Zimbabwe's efforts to resolve its debt issues, noting that it would restore confidence in the southern African country's economic reform policies.

Primarily, the DCG would handle Zimbabwe's US$2.7 billion arrears clearance and debt restructuring framework, which has been designed to restore the nation's debt sustainability and rebuild confidence among international financial institutions and development partners.

"The forum will coordinate engagement with creditors, support implementation of the 10-month International Monetary Fund (IMF) Staff-Monitored Programme, and advance Zimbabwe's US$2.7 billion arrears clearance and debt restructuring roadmap, paving the way for restored access to concessional international financing," the aforementioned ministry stated.

As seen on Newsday, the Finance, Investment Promotion and Economic Development ministry also revealed that restoring regular financial relationships with foreign creditors is still one of Zimbabwe's most important objectives, as infrastructure development, industrialization, and long-term economic growth depend on having access to reasonably priced long-term finance.

"The progress made under the Structured Dialogue Platform reflects the commitment of both Zimbabwe and its international partners to finding a durable solution to the country's debt challenge through constructive engagement and economic reforms," it stated.

The Debt Consultative Group is set to hold its inaugural meeting this month, the ministry disclosed on Tuesday, via an email from the country's capital, Harare. It is anticipated that the establishment of the Debt Consultative Group will enhance cooperation among creditors and provide renewed momentum to Zimbabwe's debt resolution initiative.