Zimbabwe charms IMF

Zimbabwe charms IMF
Published: 04 February 2018 (904 Views)
ZIMBABWE continues to charm the international community, with the International Monetary Fund (IMF), saying its relations with Harare have been evolving in a very positive way for some time.

Since 1999, the country's relations with several multilateral financial institutions such as the World Bank, IMF and Paris Club, have been frosty due to failure to honour its obligations.

The country owes lenders about US$11,7 billion and has come up with a repayment plan, which is central in normalising relations. Last Thursday, IMF deputy spokesman Mr William Murray told journalists in Washington, the United States, that relations between Zimbabwe and IMF are encouraging.

"Our relationship with Zimbabwe has been evolving in a very positive way and for some months now. They (relations) have normalised their debt with (us) . . . we've normalised our relationship in terms of their arrears to the IMF, but they still have a significant debt overhang problem with other international financial institutions and other official creditors," said Mr Murray.

Zimbabwe has come up with an ambitious debt clearance plan dubbed the Lima Plan, which was first adopted in Peru in 2015. Through the Lima Plan, Zimbabwe has committed to deliberate simultaneous repayment modalities with the World Bank, IMF and the African Development Bank (AfDB).

Creditors and development partners supported the Lima Plan, which envisaged clearing arrears to the IMF using Special Drawing Rights (SDRs) holdings. IMF's US$107,9 million, which had been in arrears since 2001, was settled on October 15, 2016 to the Poverty Reduction and Growth Trust through SDRs. The Lima Plan also entails paying the International Bank for Reconstruction and Development (IBRD) with a bridge loan from a bilateral creditor while the International Development Association (IDA) was going to draw on a turnaround facility.

The AfDB is also to be paid with the AfDB Pillar II Trust Fund set up for countries' arrears clearance.

Mr Murray said IMF managing director, Mrs Christine Lagarde, met President Emmerson Mnangagwa two weeks ago in Davos, Switzerland, and updated each other on where things stand.

He also acknowledged that the economy is grappling with several challenges which include fiscal deficit, which has led to liquidity shortages and created inflationary pressures. Mr Murray said the liquidity challenges are also threatening the viability of the financial sector and the country's exchange rate regime.

Government, through the 2018 National Budget, says it will stop supporting parastatals that do not craft bankable turnaround projects; cut expenditure and reduce the wage bill by rationalising the civil service. Re-engaging the broader international community, which has already started as evidenced by recent visits of senior officials from Britain, together with opening up the economy, are seen as critical ingredients to getting support from the IMF.

Said Mr Murray: "The IMF stands ready to support the authorities and their efforts to address these challenges. But as we noted, in addition to a strong coherent reform program, a concerted international effort will be required to revive and reintegrate the Zimbabwean economy.

"An IMF financial arrangement, for example, would only be possible after progress in resolving Zimbabwe's arrears to the other IFIs and to the other creditors."

- Sunday Mail

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Looting soldier shot during protests

by Mandla Ndlovu | 17 January 2019 | 91 Views

How drug offences can affect your life

by Staff Reporter | 17 January 2019 | 22 Views

Zimbabweans march to ANC headquaters over Mnangagwa

by Mandla Ndlovu | 17 January 2019 | 46 Views

Mnangagwa meets Belarus President

by Staff reporter | 17 January 2019 | 21 Views

Who used the extra 480 million litres of fuel the last six months?'

by Staff rpeorter | 17 January 2019 | 37 Views

Mnangagwa signs 8 MOUs in Belarus

by Staff reporter | 17 January 2019 | 36 Views

Govt meets transporters over fares

by Staff reporter | 17 January 2019 | 36 Views

Military in civilian life: lessons from the fall of Mugabe

by The Source News Agency | 17 January 2019 | 23 Views

'Zimbabwe potential hub for industrial development in Africa'

by Staff reporter | 17 January 2019 | 29 Views

ZRP heightens crackdown against criminals

by Staff reporter | 17 January 2019 | 18 Views

Zimbabwe counts huge costs of stay-away

by Staff reporter | 17 January 2019 | 14 Views

Zesa dismisses social media messages

by Staff rpeorter | 17 January 2019 | 27 Views

Gun-wielding soldiers assault Daily news staff

by Staff reporter | 17 January 2019 | 20 Views

Mnangagwa's re-engagement efforts with Western countries is dead

by Staff reporter | 17 January 2019 | 30 Views

Police should probe vandalism, looting

by Staff reporter | 17 January 2019 | 26 Views

Military door-to-door raids slammed

by Staff reporter | 17 January 2019 | 19 Views

Trial of 'Shut-down' protesters fast-tracked

by Staff reporter | 17 January 2019 | 25 Views

'Internet shutdown draconian'

by Staff reporter | 17 January 2019 | 27 Views

MDC Alliance's Chibaya remanded in custody

by Staff reporter | 17 January 2019 | 13 Views

How to win at slots? Top slot tips & tricks

by Staff Reporter | 17 January 2019 | 45 Views

Stay away: A manifestation of the MDC's violence DNA

by Nobleman Runyanga | 17 January 2019 | 81 Views

Kirsty Coventry has not resigned from ministry

by Mandla Ndlovu | 17 January 2019 | 92 Views

Mnangagwa and Gen Chiwenga responsible for lootings, shootings and terrorism

by Dr Nkululeko Sibanda (Presidential Spokesperson) | 17 January 2019 | 112 Views

A tale of a school teacher

by Virimayi Chidembo | 17 January 2019 | 78 Views

My encounter with the rowdy protestors

by Betty Gatsi | 17 January 2019 | 50 Views

Price of bread now $6

by Mandla Ndlovu | 17 January 2019 | 104 Views

The unleashing of army to descend on demonstrators was uncalled for

by Leonard Koni | 17 January 2019 | 46 Views

How Facebook and Whatsapp fuelled chaos and confusion in Zimbabwe

by Dr Masimba Mavaza | 17 January 2019 | 48 Views

Mnangagwa pleased with Putin meeting

by Staff reporter | 17 January 2019 | 127 Views

Mnangagwa opens consulate in Belarus

by Staff reporter | 17 January 2019 | 139 Views

MDC perpetrating violence, violating human rights

by Anesu Pedzisayi | 17 January 2019 | 131 Views

3 Religious Sites to Visit When in Israel

by Staff Reporter | 17 January 2019 | 87 Views

BREAKING: Evan Mawarire charged with treason

by Mandla Ndlovu | 17 January 2019 | 226 Views

'100 men abaducted in Matabeland during protests'

by Mandla Ndlovu | 17 January 2019 | 133 Views

Army continues terror as Bulawayo is shutdown

by Mandla Ndlovu | 17 January 2019 | 291 Views

Here's what motorists are paying for fuel around the world

by wheels24 | 17 January 2019 | 228 Views

Bond notes and their possible long-term legacy

by Staff reporter | 17 January 2019 | 154 Views