Zimbabwe’s plans to settle $10.7 billion of foreign debt are “reasonable,” said Mungai Lenneiye, the country manager for the World Bank.

“We think what the minister of finance has so far put in place in terms of debt repayment sounds reasonable,” Lenneiye told a conference in Nyanga, eastern Zimbabwe, today. “We think in the new year the process of lending could begin.”

Aldo Dell’Ariccia, the European Union Ambassador to Zimbabwe, told the conference the economic grouping will reconsider new credit only if the southern African country settles outstanding obligations.

“The EU cannot unveil credit at the moment because of the existing debt,” he said. He didn’t say how much is owed.

Finance Minister Tendai Biti in March unveiled the Accelerated Arrears Clearance, Debt and Development Strategy, which seeks retire the country’s debt and enable the resumption external financing.

To contact the reporter on this story: Godfrey Marawanyika in Johannesburg at gmarawanyika@bloomberg.net

To contact the editor responsible for this story: Gordon Bell at gbell16@bloomberg.net