Harare – Zimbabwean Finance Minister Catrick Chinamasa has said that the southern African country's government was broke because it was not part of the global economy, a report said on Thursday.
According to New Zimbabwe, Chinamasa said that the treasury was struggling to pay its workers because it had no money, due to the ongoing sanctions that were imposed on the country.
Speaking at the poverty reduction forum in the capital Harare, Chinamasa said that the government’s failure to uphold its international obligations, such as paying international lenders, had derailed the country’s economic growth.
He further warned that the country needed to be financially disciplined in order to mend its relations with various international financial institutions.
Chinamasa’s revelation came amid an intense deadlock between the government and its workers over unpaid June salaries.
The Zimbabwean government announced on Monday that it would delay paying June salaries for the military and police by up to two weeks.
It said other workers on the state payroll would only receive their salaries next month.
This reportedly prompted the country's biggest teachers' trade union to threaten industrial action.
The Zimbabwe Teachers Association said that the delay in the payment of the teachers' salaries was an "insult".