Zimbabwe has paid $700-million to the African Development Bank (AfDB) to reduce its foreign debt despite the financial woes facing the nation, the bank said Monday.

AfDB said in a statement that Zimbabwe had been in arrears and made the repayment last month despite the deepening foreign exchange shortages facing the embattled southern African nation.

"Zimbabwe has, in all, paid $700-million to the bank group despite numerous economic challenges currently facing the country, both globally and locally," the bank said on the eve of its annual meeting in Maputo.

Zimbabwe made a $500-million repayment to AfDB and an additional $200-million to the bank's subsidiary lender, African Development Fund, the statement said.

The bank did not disclose Zimbabwe's total indebtness.

Zimbabwe is facing unprecedented political and economic meltdown that has seen the country experiencing one of the world's highest inflation rates at 165 000 percent.

"The challenges have contributed to the under performance of the agricultural, mining and tourism sectors," the statement said.

The AfDB said the repayment has shown that despite Zimbabwe facing economic difficulties, government was determined to pay up its international financial obligations.

The African Development Bank holds its summit from 14 to 15 May.

Sapa