Zimbabwe to sell diamonds to pay off debt: Prime Minister

Reuters News
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Posted: Mar 18, 2011 4:42 PM
Zimbabwe to sell diamonds to pay off debt: Prime Minister

HARARE (Reuters) - Zimbabwe's Prime Minister Morgan Tsvangirai said Tuesday the country will use revenue from diamond sales to repay part of its external debt amounting to $7.1 billion.

The southern African nation is facing diamond export controls for suspected human rights violations in mining of the precious stones.

"The government has so far sold diamonds worth $300 million, and the money will be used to service the debt and also to rehabilitate Zimbabwe's faltering industry," Tsvangirai told an investment conference in Harare.

(Reporting by Alfonce Mbizwo; Editing by Jon Herskovitz)