Zimbabwe charms IMF

Zimbabwe charms IMF
Published: 04 February 2018 (785 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

Book unpacks racial, tribal discrimination

by Staff reporter | 21 August 2018 | 10 Views

ZCTU offices shooting condemned

by Staff reporter | 21 August 2018 | 12 Views

Factionalism rears ugly head in Zanu-PF

by Staff reporter | 21 August 2018 | 11 Views

Bosso players letting Ariel down

by Staff reporter | 21 August 2018 | 12 Views

Bukkie wrapped in 'snacks' smugglers appear in SA courts

by Staff reporter | 21 August 2018 | 8 Views

Govts urged to install female chiefs

by Staff reporter | 21 August 2018 | 8 Views

'Reduce presidential aspirants age limit to 30'

by Staff reporter | 21 August 2018 | 11 Views

10 eye Mutare mayoral post

by Staff reporter | 21 August 2018 | 7 Views

MDC Alliance candidate appears in court

by Staff reporter | 21 August 2018 | 7 Views

Zimbabwe: In pursuit of a never-coming democracy

by Learnmore Zuze | 21 August 2018 | 8 Views

Jumbos harass villagers

by Staff reporter | 21 August 2018 | 4 Views

Youth participation in elections hailed

by Staff reporter | 21 August 2018 | 9 Views

Simbisa to expand Nando's footprint countrywide

by Staff reporter | 21 August 2018 | 6 Views

Mnangagwa must resign or face humiliation

by Kennedy Kaitano | 21 August 2018 | 10 Views

Chamisa too hot to handle

by Pardon Maguta | 21 August 2018 | 9 Views

Political grandstanding will not sanitise Mnangagwa legitimacy

by Editorial - newsday | 21 August 2018 | 8 Views

Chamisa's foreign lawyers cornered

by Staff reporter | 21 August 2018 | 10 Views

Mnangagwa scoffs at Chamisa's sugar expert report

by Staff reporter | 21 August 2018 | 8 Views

Chamisa gnaws at Mnangagwa results

by Staff reporter | 21 August 2018 | 10 Views

Mine collapse kills on injures three

by Staff reporter | 21 August 2018 | 8 Views

It never rains but pours for Undenge

by Staff reporter | 21 August 2018 | 8 Views

Chamisa anxious

by Staff reporter | 21 August 2018 | 12 Views

Zanu-PF youths reposses cars from former party MPs

by Staff reporter | 21 August 2018 | 8 Views

MDC Alliance neglects jailed cop killers

by Staff reporter | 21 August 2018 | 5 Views

Chamisa's message to SADC 'negotiate peaceful Mnangagwa exit'

by Staff reporter | 21 August 2018 | 11 Views

ZBC demands $13,000 for Con-Court poll challenge live feed

by Staff reporter | 21 August 2018 | 6 Views

Zimbabwe state security agents assault human rights lawyer

by Stephen Jakes | 21 August 2018 | 4 Views

Cross is a pathological lair - Ruhanya

by Stephen Jakes | 21 August 2018 | 5 Views

PicknPay protesters to appear in court

by Stephen Jakes | 21 August 2018 | 5 Views

ConCourt has a task to determine ZEC errors

by Stephen Jakes | 21 August 2018 | 5 Views

'Mnangagwa not appointed chair of SADC Troika'

by Stephen Jakes | 21 August 2018 | 5 Views

Chamisa to humiliate Mnangagwa at Con-Court

by Staff reporter | 21 August 2018 | 6 Views

Chamisa's expart lawyers refused to submit their CVs

by Staff reporter | 21 August 2018 | 5 Views

Bulawayo congratulates Mnangagwa

by Staff reporter | 21 August 2018 | 4 Views

Reflections on a captured Zimbabwean state

by Tazvi Gamz | 21 August 2018 | 8 Views

Losing Zanu-PF candidate parcels out CFI land

by Staff reporter | 21 August 2018 | 6 Views

Losing MDC MP up for illicit $370,000 diamond deals

by Staff reporter | 21 August 2018 | 7 Views

'Biti's lawyer tortured'

by Staff reporter | 21 August 2018 | 6 Views