IMF offers to help Zimbabwe clear arrears

IMF offers to help Zimbabwe clear arrears
Published: 21 September 2018 (349 Views)
THE International Monetary Fund (IMF) yesterday said it was ready to help Zimbabwe craft a debt clearance strategy anchored on fundamental economic reforms.

This comes after outgoing British Ambassador to Zimbabwe Catriona Laing made similar remarks on Tuesday that London was prepared to support an interim staff-monitored programme for Zimbabwe to quickly clear its obligations to international lenders and start accessing new funding.

Since 1999, Zimbabwe has been unable to access foreign funding, critical for infrastructure development, after it defaulted on payments. The US sanctions law, the Zimbabwe Democracy and Economic Recovery Act (ZDERA), also precluded multilateral institutions with dealings with the US from extending lines of credit to Zimbabwe. Zimbabwe is in arrears of nearly $1,8 billion to the World Bank and the African Development Bank.

"The IMF stands ready to help (Zimbabwe) design a reform programme that can help facilitate clearance of external arrears to international development banks and bilateral official creditors . . . that would open the way for fresh financing from international community.

"Supporting reforms will require a comprehensive stabilisation and structural programme from the (Zimbabwe) authorities and financial support from the international community to provide space for these reforms.

"We see that the new administration of President Mnangagwa has expressed commitment to strong economic reforms," reads a statement by the IMF spokesperson. Speaking to journalists on Tuesday, Ambassador Lang said her country was prepared to help Zimbabwe "start a serious dialogue" around the clearance of the arrears.

She said this after meeting Finance and Economic Development Minister Professor Mthuli Ncube in Harare.

"We are here to give that support to try and encourage a process back to an IMF programme, perhaps through an interim staff monitoring programme as soon as possible," she said.

Prof Ncube said President Mnangagwa was still deciding whether to follow the Highly Indebted Poor Country route or a commercial deal to clear the arrears.

Britain said it was excited to see Harare achieve middle income economy status by 2030 and is keen to assist in implementation of socio-economic and political reforms.

"We will be going to Bali (Indonesia) for the World Bank meetings and again, further conversation around the arrears clearance issue of which, again, I thank (the) UK for being a key partner in moving that process along. "So I wanted to thank Ambassador Laing for being a wonderful supporter for Zimbabwe,'' said Prof Ncube.

Ambassador Laing said the reforms were central to achieving the envisaged 'Vision 2030', under which Government wants to ensure all active citizens access "decent jobs" and a per capita income approaching $5 000.

UK plans to support Zimbabwe when at this year's annual IMF and World Bank Group meetings scheduled for Bali Nusa Dua, Indonesia.

There, Zimbabwe is expected to meet its creditors and present a strategy on its arrears clearance. The annual meetings are scheduled for October 12 to 14. Prof Ncube, believes 'Vision 2030' is "absolutely" achievable if "we all put our hands on deck".

- the herald

Tags: IMF, Zimbabwe, Arrears,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Govt Suspends Restrictions On Importing Goods

by Staff Reporter | 23 October 2018 | 56 Views

Mnangagwa appoints Civil Service Commission

by Staff Reporter | 23 October 2018 | 60 Views

The day Chamisa wanted to overthrow the Government

by Elijah Chihota | 23 October 2018 | 55 Views

How then did Mthuli Ncube hire such a shady character?

by Staff reporter | 23 October 2018 | 49 Views

WATCH: Lumumba explains why he got fired - Live

by Staff Reporter | 23 October 2018 | 86 Views

Mthuli Ncube's 2% tax still illegal

by Veritas | 23 October 2018 | 45 Views

Chamisa now willing to engage Mnangagwa

by Staff reporter | 23 October 2018 | 203 Views

'Soldiers fired randomly on August 1'

by Staff reporter | 23 October 2018 | 128 Views

Zimbabwe to cut company registration period to within 6 hours

by Staff reporter | 23 October 2018 | 113 Views

Chamisa statement on the prevailing economic, political and humanitarian situation

by Adv. Nelson Chamisa MDC President | 23 October 2018 | 167 Views

Cops scramble for cooking oil

by Simbarashe Sithole | 23 October 2018 | 131 Views

Mnangagwa flies out to Zambia

by Staff reporter | 23 October 2018 | 118 Views

Chigowe denies refs favour Dembare

by Staff reporter | 23 October 2018 | 81 Views

Emergency recovery measures to stop Zimbabwe economic free-fall

by Dr Tapiwa Mashakada | 23 October 2018 | 144 Views

Chamisa demands 2% tax refunds

by Staff reporter | 23 October 2018 | 150 Views

Zanu-PF chefs fail to pay workers

by Staff reporter | 23 October 2018 | 118 Views

Chamisa's youths to avenge vendor's death

by Staff reporter | 23 October 2018 | 122 Views

Zimbabwe motorists sleep in fuel queues

by Staff reporter | 23 October 2018 | 85 Views

Police pounce on Kadoma Forex dealers

by Stephen Jakes | 23 October 2018 | 138 Views

Dogs maul boy at Beitbridge border post - WhatsApp update

by Concerned Citizen | 23 October 2018 | 105 Views

Indosakusa leaves injiva in stitches

by Future Moyo aka Jamelah | 23 October 2018 | 84 Views

Kombis spend more time in queues these days

by Stephen Jakes | 23 October 2018 | 86 Views

How to find a safe and reliable online casino

by Staff Reporter | 23 October 2018 | 89 Views

Learning Factory: studying History and modern technology in Zimbabwe

by Brian Maregedze | 23 October 2018 | 79 Views

Mugabe's son-in-law appears in court, gets US$30 bail

by Staff Reporter | 23 October 2018 | 136 Views

NSSA reviews retirement grants

by Staff reporter | 23 October 2018 | 108 Views

Zimbabwe teachers to boycott Zanu-PF businesses

by Staff reporter | 23 October 2018 | 89 Views

Mthuli Ncube on a trajectory of vendettas?

by The Banker | 23 October 2018 | 341 Views

Chiyangwa demands respect he doesn't deserve

by Staff reporter | 23 October 2018 | 191 Views

Mnangagwa's Politburo, Central Committee to meet

by Staff reporter | 23 October 2018 | 219 Views

Mines Permanent Secretary in 'baptism of fire'

by Staff reporter | 23 October 2018 | 144 Views

Bid to block Mthuli Ncube's 2% tax hits brick wall

by Staff reporter | 23 October 2018 | 136 Views

Operation Restore Legacy hits RBZ

by Staff reporter | 23 October 2018 | 197 Views

Acie Lumumba fired?

by Staff reporter | 23 October 2018 | 236 Views

Vandalism, theft cost Zesa $20million

by Staff reporter | 23 October 2018 | 101 Views